Things to consider when founding a Limited Liability Partnership (LLP)

Factors to take into account when forming an LLP, forms, documents and templates to start a limited liability partnership

While the specifics of each Limited Liability Partnership (LLP) will vary depending on individual requirements, there are certain matters that must be addressed:

  • Total investment in the LLP of each member
  • How the profits and losses will be split between the members
  • The amount of money each member can take from the funds each month
  • How the LLP deals with goodwill should a member leave. (Goodwill is considered the difference between the total assets of the LLP and the total "market" value of the LLP itself, taking into account issues such as reputation and development potential)
  • Indemnities of members
  • The applicable procedures should a member leave an LLP at any time for any reason
  • The management structure of the LLP
  • Prevention of solicitation of employees and customers of LLP by leaving members (for a set period of time)
  • Prevention of a former member of the LLP competing with the LLP (for a set period of time)
  • How disputes will be resolved within the partnership

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