Recent changes to working practices and attitudes of the next generation of professional advisers have reignited an old debate on whether a Limited Liability Partnership (“LLP”) is the most desirable legal structure for today’s professional services practices.
Many practices are structured as either an LLP or a private limited company (“Company”). There are also some practices which have chosen to remain as a traditional unincorporated partnership (“Firm”). A small number of practices have taken the plunge to float as a public limited company. However, in recent months, we have seen growing interest in LLP conversions from professional services firms.
What makes LLPs so attractive to professional services practices, and what issues can deter or prevent a Firm from converting to an LLP?