How To LLP: Designated Partners – Crucial Roles & Responsibilities
Designated partners in a Limited Liability Partnership (LLP) play a pivotal role in ensuring the smooth operation and legal compliance of the entity. Consequently, this bears significant responsibilities akin to those of company directors and secretaries. As a result, their role is both demanding and essential. Therefore, understanding these responsibilities is crucial for anyone involved in or considering a Limited Liability Partnership.
Additionally, registering an LLP with Companies House you need two or more members, and at least two of them must be “designated”.
Furthermore the duties of designated LLP members are similar to those of limited company directors of companies and company secretaries, and have exactly the same rights and obligations, plus additional:
- Register an LLP for Self-Assessment with HMRC.
- Registering a Limited Liability Partnership for a VAT payer (if necessary)
- Register a Limited Liability Partnership as an employer and create a PAYE.
- Maintenance of mandatory Limited Liability Partnership registries, including the PSC registry
- Maintain accounting records
- Preparation and submission of annual reports
- Submit your tax returns.
- Ensuring all PAYE tasks have been completed
- Appoint an accountant and / or auditor
- Notify Companies House of any changes.
- Sign contracts and other documents.
- Represent the Limited Liability Partnership in any legal proceedings.
- Acting behalf of the company if it is liquidated or dissolved.
Also any additional management duties set out in the Limited Liability Partnership agreement
Designated members are legally liable if they fail to fulfill their statutory responsibilities.
Who can be a Designated LLP Member?
Any individual can be a regular member or a designated member of the Limited Liability Partnership, unless they:
- under the age of 16
- deprived of the right to act as a member of the LLP or director of the company
- are a failed bankrupt
Moreover each limited liability partnership must formally appoint at least two designated members. As a result, if your Limited Liability Partnership only has two members at a time, both members will be nominated. If you do not appoint at least two designated members, Companies House will automatically consider all members designated.
To change the status of a current Limited Liability Partnership member from Regular to Designated or Designated to Regular, the form must be completed and filed with Companies House within 14 days.
