LLPs in general practice: Key duties of designated members
Designated members in a UK Limited Liability Partnership (LLP) have specific legal responsibilities under the Limited Liability Partnerships Act 2000 to ensure that the LLP complies with its statutory obligations. While all members can manage the business and share profits, only designated members are accountable for legal and administrative compliance.
In our first blog on LLPs, we explored how LLPs offer an alternative business model in general practice. In our second blog, we look at the key duties and responsibilities of designated members of an LLP.
LLP designated members: Duties and responsibilities
- Compliance with Companies House. Filing the annual confirmation statement and submitting annual accounts prepared to proper standards.
- Statutory registers. Maintaining accurate statutory records (e.g. register of members)
- Notification duties. Notifying Companies House of changes in members, changes to member details and changes to the registered office address.
- Tax filing. Ensuring the LLP submits its partnership tax return to HMRC.
- Dissolution and winding up. Managing the formal winding-up procedures if the LLP is closed and submitting final documents and notify authorities.
- Legal accountability. Designated members may face personal penalties or fines for failure to meet legal obligations.
In the UK, an LLP must have at least two designated members and, as a choice, all members can hold the position as a designated member. If none are named, all members are treated as designated by default.
If you would like to discuss any of the issues raised here, please contact Rob Day.
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