Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Advantages of company or LLP

10 June 2024
Issue: 4940 / Categories: Forum & Feedback , Business
Sparky LLP

My clients are two qualified electricians and plumbers who have worked in partnership for many years. Previously they tended to undertake work in domestic premises for private individuals so the value of individual contracts was relatively small. In the past few months they have started to work for some larger building businesses carrying out work on high value properties and some business premises.

They have taken on some employees and are becoming concerned at the potential risks both financial and professional that their business may become liable for if things go wrong. They are considering incorporation but before doing this I am wondering whether I should consider a limited liability partnership (LLP) as an alternative.

Could Taxation readers summarise the advantages or disadvantages to either a limited company or LLP in this situation? Not only am I thinking about the tax implications on the transfer...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon