LLP Frequently Asked Questions

From 1 June 2007, Lee & Priestley will begin trading as a Limited Liability Partnership ("LLP").

What is an LLP?

An LLP is a combination of a traditional partnership and a limited company. It is a separate legal entity, unlike a partnership which is a collection of individuals. In a traditional partnership, partners have unlimited liability, whereas conversion to LLP offers the benefit of limited liability. As an LLP, the firm is still able to retain its traditional partnership structure.

Who will be a partner?

The partners of the LLP will be the existing partners in Lee & Priestley.

Why is Lee & Priestley converting?

There are a number of reasons for conversion. LLPs are increasingly viewed as the most appropriate business structure for professional services firms. Limited liability makes it easier to attract key staff. An LLP may well find it easier to raise finance than a traditional partnership.

What will be the name of the new firm?

Lee & Priestley LLP.

As a client of Lee & Priestley how will LLP conversion affect the service provided to me by the firm?

The terms of engagement under which Lee & Priestley will provide services to you are mostly the same as those applying prior to conversion. New retainer letters will be issued by the LLP on all current matters.These are the following points of note:

• Lee & Priestley LLP is a Limited Liability Partnership registered in England with registered number OC323119. It has its registered office at 10-12 East Parade, Leeds, LS1 2AJ;
• Its VAT number is 179888084
• All rights and obligations, including any contractual obligations which Lee & Priestley has with you, will be transferred to and assumed by Lee & Priestley LLP with effect from 1 June 2007;
• Lee & Priestley LLP is a limited liability partnership and no personal duty or obligation is owed to clients by any individual partner, employee or consultant of the LLP. Accordingly it is a term of our engagement going forward that no claim can be brought in respect of any loss or damage against any of our partners, employees or consultants. The LLP itself will continue to carry the same substantial level of professional indemnity insurance as was carried by the former partnership.

In terms of day to day operations you will see no noticeable difference; it will be "business as usual".

As a supplier to Lee & Priestley, how will LLP conversion affect the relationship I have with the firm?

All rights and obligations, including any contractual obligations which Lee & Priestley or any of its individual partners or staff has with you, will be transferred to and assumed by Lee & Priestley LLP with effect from 1 June 2007.

Lee & Priestley LLP is a limited liability partnership and no personal duty or obligation is owed to suppliers by any individual partner, employee or consultant of the LLP.

In terms of day to day operations you will see no noticeable difference; it will be "business as usual".

What are the implications for finance departments?

Any cheques or invoices which are paid or payable by or to Lee & Priestley should from 1 June 2007 be in the name of Lee & Priestley LLP. The LLP will however continue to use "Lee & Priestley" as a trading style and so cheques payable to "Lee & Priestley" will be paid into the new LLP accounts.

What new requirements does Lee & Priestley LLP have, for example, in terms of disclosing financial information?

Conversion to LLP will mean that Lee & Priestley LLP is required to file with Companies House:

• An annual report and accounts;
• Any changes to the LLP's membership;
• Any change to members' names and residential addresses; and
• Any changes to the registered office address.