About LLP Designated Members

The term "designated members" confers more responsibilities than privileges. The Designated Members are responsible for:

• Appointing an auditor (if one is needed)

• Signing the accounts on behalf of the members

• Delivering the accounts to Companies House

• Notifying Companies House of any changes to the membership, registered office or name of the LLP

• Preparing, signing and delivering the Annual Return

• Acting on behalf of the limited liability partnership if it is wound up and dissolved

This does not sound like good news! However, it is effectively the same as the responsibilities of the Directors and Company Secretary of a traditional Private Limited Company (LTD). There must be at least 2 Designated Members among the list of Members (Partners) registered against the LLP. In larger partnerships the usual approach is to make the senior partners the Designated Members, as they are usually the ones best placed to have the final say on the accuracy of the Accounts and to determine who will be admitted to the partnership.

Designated members are accountable for these responsibilities and face penalties for failure to comply

More about Limited Liability Partnerships

Forming a Limited Company

Register a Private Company Limited by Shares (the normal choice for most types of business).

Community Interest Company (CIC)

This relatively new type of company provides a lighter format for social enterprises that don't want the full burden of administering a registered charity. The company is registered with Companies House and the CIC Regulator.

Read about Community Interest Companies (CIC).

Charity Limited by Guarantee

The approved limited liability format for operations inending to register as charities

Which is best - LLP or LTD?