Chapter STSM091030
| Published date | 07 March 2016 |
| Record Number | STSM091030 |
| Court | HM Revenue & Customs |
The most common form of partnership is one established by two or more individuals under the terms of the Partnership Act 1890. This sort of partnership has been particularly popular amongst professionals such as solicitors, doctors, accountants as well as being used for ordinary trading businesses.
A less frequently encountered entity is a ‘limited partnership’ constituted under the Limited Partnership Act 1907. A limited partnership must have at least one partner with unlimited liability (the ‘general partner’). The other partners are the ‘limited partners’, contributing funds to the partnership assets and enjoying immunity from liability beyond the amount of their contribution. A limited partner must not take part in the business and has no authority to bind the firm. Like a normal partnership, a limited partnership does not have separate legal personality.
The Limited Liability Partnership Act 2000...
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