If a partnership (other than an LLP) owes debts, all of the partners will, on the face of it, be jointly and severally liable to repay sums owed. Each partner is liable not only for his or her business and personal debts they are also liable for their partner’s business on a joint and several basis.
A Limited Liability Partnership (LLP) is a hybrid between a partnership and a company in that it has features of both. The primary difference between a partnership and an LLP is that, unlike a regular partnership, the members of an LLP are not generally liable for any outstanding debts the partnership incurs because, like a limited company, an LLP is a separate legal entity from its owners.
Specific advice should be obtained before taking action, or refraining from taking action, on any of the issues covered above.For further information, please contact one of our Client Services Team who will be able to assist you.