An LLP is a business structure that combines elements of traditional partnerships with the concept of limited liability. This hybrid model provides entrepreneurs with the flexibility of a partnership while shielding their personal assets from business liabilities.

An LLP sits somewhere between a traditional partnership and a limited company. Here are the key features that set it apart:

1. Legal Protection: An LLP agreement provides a measure of protection for all partners. Unlike a standard partnership, where personal liability can be unlimited, an LLP ensures limited liability for its members.

2. Separate Legal Entity: An LLP is registered at Companies House and operates as a separate legal entity. It can enter into contracts, own assets, and incur liabilities independently.

3. Hybrid Nature: LLPs combine the best of both worlds. They offer personal asset protection similar to a limited company while allowing more control over decision-making and profit distribution.