Corporate partner

Our client is a two-partner accountancy firm and wishes to bring a corporate partner into its limited liability partnership (LLP). For various reasons an incorporation is not possible or desired.

The only significant commercial justification for the corporate partner that we can think of would be for the company to take on staff (and the associated risks of being an employer) and also to provide financial management to the LLP.

Our plan is for the corporate partner to charge a fee for the provision of staff based on the cost plus a mark-up of say 3% to 5%.

On top of this the corporate partner would then take a profit share of say one third (on the basis that it would be integral to the LLP’s trade).

My queries are regarding the set-up of the new company and subsequent financing.

First from...