Anxious wait as small firms delay becoming an LLP

The body believes the number of firms taking advantage of the new legal entity will only be in the ‘low thousands’ in the first year and only one of the Big Five firms has given any public indication it will convert.

Companies House spoke to all the major professional bodies affected by the legislation and said none of them were committing themselves in terms of advice to their members until all details emerge.

A spokesman said: ‘People know this corporate vehicle is coming but haven’t formed any view and are waiting until they see the full legislation.’

The LLP Bill is currently waiting for Royal Assent. Only Ernst & Young has given an indication that it is ‘likely’ to take LLP status. Concerns have been voiced about who would ‘audit the auditors’ and a segment of the Bill known as the ‘claw-back clause’ which appears not to give the protection to partners that was first expected from the legislation.

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