8.1 A limited liability partnership is a special form of partnership, in which the partnership becomes incorporated, so it becomes a legal entity distinct from the partners, and the liability of each partner to meet losses incurred by the LLP is limited to the capital which they have each agreed to contribute to the LLP. In practice, LLPs are most frequently used as a means of limiting the liability of professionals such as lawyers and accountants, where the appropriate regulatory body does not permit the use of a company.
8.2 Whilst LLPs have the advantage of tax-transparency, they are limited to shared ventures with a view to a profit and they are not often used for local authority joint working.