Readers’ forum: Advantages of company or 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...