We decided that Element Architecture Studio shall be run as a Limited Liability Partnership (LLP) and registering each of the partners at Companies House.
The LLP does not file any form of constitution. The members can agree profit sharing or other arrangements amongst themselves verbally and change those arrangements as often as they agree.
Also, we as partners are not liable for each others actions in terms of the business. For example business debts, employee claims, or public liability.
Being an LLP is more tax efficient. The partners are self-employed. The company will file an annual tax return, but each partner, to avoid being in the highest tax class will report their share of the profit on their personal tax return. This will be lower than if the company filed the profit as one lump sum.
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