US limited liability partnerships (LLPs) operating in London do not wish to be required to file accounts and so disclose their figures. This is an understandable wish; and is one that is probably shared by English LLPs, who are required to file accounts. The Government has decided to follow – for the time being, at least – a course that meets the US wish. US LLPs are not, of course, the only overseas LLPs who carry out business in the UK. But they are clearly the most prominent overseas LLP presence here.
For English LLPs, as for limited companies, filing and disclosure of the corporation’s accounts is part of the price to be paid for the members who own the business – and operate within the corporate body – not being personally liable for the debts and liabilities of the business. Third parties dealing with the business have recourse against the corporate entity only. Without the filing of accounts, these third parties cannot properly assess the risk they are taking. In return for disclosure (and certain other ‘policing’), the individual members are, broadly speaking, protected from personal liability.
