Limited liability partnership (LLP) conversion has proved popular among the larger law firms as a means of isolating and controlling liability, without seem-ingly requiring them to relinquish many of the advantages of the traditional partnership. On the other hand, being an LLP does oblige firms to commit themselves to a high level of financial disclosure. Some may have had misgivings about ceding their rights to privacy in this respect, but have evidently concluded that it is a price worth paying for the extra protection available under the LLP regime. Firms have therefore begun dutifully filing their returns at Companies House, in the majority of cases hoping (one suspects) that no one will pay much attention to them.
The question, however, is whether LLP firms should take a more positive approach to releasing their financial statements – and indeed use the requirement for financial disclosure as an opportunity to create a step change in communications with key stakeholders.
