Contributed By Hawkins Hatton Corporate Lawyers Ltd
Limited liability partnerships are comprised of members who are in partnership with limited liability. The relationship between the members is usually governed by a members’ agreement. An LLP is taxed in the same way as a partnership.
Private limited companies are comprised of shareholders who own share capital of the company proportionally to their individual levels of capital investment. Directors (who may or may not include shareholders) are appointed to run the company. The shareholders have personal liability protection, and their relationship is governed by a shareholders’ agreement. This entity is liable to corporation tax and shareholders only pay tax on dividends.
A public limited company is a limited liability company whose shares may be sold and traded to the public and listed on a stock exchange. It can therefore raise money by the sale of shares to the general public.