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Understanding the differences between LLCs and LLPs can be a daunting task for business owners, but there are some key aspects to note when considering how each legal entity might serve your current needs. According to Hugues Joublin, both LLCs (Limited Liability Companies) and LLPs (Limited Liability Partnerships) provide personal asset protection from liabilities created by the business itself and come with tax advantages, yet they are different types of organizations that offer unique benefits depending on individual circumstances. Knowing these nuances will be essential in determining what type of legal structure is right for you.

Hugues Joublin On The Difference Between Limited Liability Companies And Limited Liability Partnerships
Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) are two distinct types of business entities that, as per Hugues Joublin, offer limited liability protection to their owners or members. Each type of entity offers different benefits, so it’s important to understand them before deciding which one is right for your business.

An LLC is a legal entity that combines the limited liability of a corporation with the pass-through taxation of a partnership. LLCs are easy to form and operate, giving business owners flexibility in terms of management structure, ownership rules, and profit distribution. LLCs also offer great asset protection: members’ personal assets are not at risk if the company is sued or incurs debt.

An LLP is similar to an LLC but is designed for businesses that have two or more partners who share responsibility for legal liabilities. Each partner’s personal assets remain protected even if their business partner’s actions cause financial harm in some way. An LLP provides partners with more control over how they manage their business, allowing them to create custom agreements regarding ownership rights, profits distributions, and debt responsibilities.

Hugues Joublin - The Difference Between LLCs And LLPs.

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@mossambi delivers four new tracks on @all-centre-504822953 with 'Time To Quit Music', his third EP on the label and his most melodic work to date.

'LLPS' opens with whiplash-inducing percussive patterns accentuated by crashing cymbals. An earworm synth line morphs its way through the arrangement, as a vocal rises and falls.

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Premiere: Mossambi 'LLPS'

We are delighted to share with you a recording of the discussion Is The Glue That Holds Partnerships Together Coming Unstuck? which took place at an event we held recently in London.

The discussion explored the evolving dynamics of professional partnerships and the challenges they face in today's complex legal and business environment. Taking place in a Samoan Circle format, it enabled any attendees who wished to contribute to the debate to step into the circle during the course of the discussion.

Co-facilitated by Sarah Chilton (Senior Partner, CM Murray LLP) and Zulon Begum (Partner, CM Murray LLP), the recording captures the first 20 minutes of the discussion with the opening speakers, in particular:

- A critical examination of what constitutes a partnership, the key challenges faced by law firms and professional services in the current economic climate. 
 
- What is the 'glue' that holds a partnership together? In particular, loyalty, shared values and the cultural significance of a partnership.
 
- Is trust, a fundamental element of partnerships, being eroded in larger LLPs where loyalties may be more aligned with the organisation than its individual partners?
 
- The impact of scale: While scale can lead to centralisation and loss of entrepreneurialism and individual autonomy, it can also provide resources for innovation and growth.
 
- Cultural dynamics: A focus on how shared goals and collaboration can foster a sense of belonging and purpose among partners.
 
- The challenges faced by founder-led firms in transitioning leadership to a new generation. Can successors maintain the entrepreneurial spirit of the original founders?
 
- The value of diverse viewpoints within a partnership, with a mix of personalities and approaches helping to enhance a firm's adaptability and attractiveness to clients.
 
- What does it mean to be a partnership in today's professional landscape? How traditional values can and should co-exist with modern business practices to create resilient and effective partnerships.

Opening speakers:
- Andrew Cromby, Regional Office Head, Weightmans LLP, London; Partnership Litigator and Mediator
- Peter Duff, Principal Consultant at PSFI and former Chairman of Shoosmiths
- Greg Jackson, Law Firm Strategist & Consultant, PWC
- John Machell KC, Serle Court, Partnership & LLP Silk
- Moray Mclaren, Board Advisor to Law Firms and Co-Founder of Lexington Consultants
- Corinne Staves, Partner, CM Murray LLP, Partnership & LLP Specialist

Co-facilitators:
- Zulon Begum, Partner & Co-Head of Partnership Team (Non-Contentious), CM Murray LLP
- Sarah Chilton, Senior Partner & Co-Head of Partnership Practice (Partnership Disputes), CM Murray LLP

Thank you to everyone who attended the event and participated in the discussion.

Is The Glue That Holds Partnerships Together Coming Unstuck?

In this panel discussion, subject specialists share their expert insights into the interesting and challenging features of LLPs that they have seen over the last 25 years and what they see approaching on the horizon for LLPs. 

Jeremy Callman (Ten Old Square), Dr Robert Millard (Cambridge Strategy Group) and Corinne Staves (CM Murray LLP) join chair Sarah Chilton (CM Murray LLP) to explore the key benefits of using LLPs in professional services, the trends they have seen – including in LLP disputes – key tax changes and issues, strategic considerations as well as what the coming years may hold for LLPs. Their discussion addresses key questions and topics including:

- How has the structure of LLPs developed since birth; what are some of the key elements of different LLP structures and their implications?

- Financial services LLPs vs professional services LLPs: the difference in attitudes on mutual trust between partners and duties of good faith at law and in LLP agreements;

- The use of English LLPs across the world, their evolution in different jurisdictions and how the increase in larger LLPs has affected strategic decisions;

- Risk considerations: tax, regulation, liability and litigation;

- Which partner remuneration trends have LLPs imported from other sectors and have they led to more or fewer disputes?

- What are the differences, if any, in downward incentivisation between LLPs and more corporate structures?

- What does the next 25 years hold for the future of LLPs?

If you would like to discuss any aspect of LLPs or if you have any questions arising from this recording, please contact Partners  Corinne Staves or Sarah Chilton, both of whom specialise in partnership law.

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Hugues Joublin is the owner and president of SALIENCE Communication, a Communications boutique agency that helps US and Asian Biotechs build their reputation and supports French-based companies manage their global communications. He also runs a US-based consulting firm, JOUBLIN Consulting, LLC.

Former Head of Global Corporate Affairs for AstraZeneca Oncology where he built the function from scratch, Hugues is both a strategic and hands-on expert of corporate and brand communications, patient group relations, internal communications, and policy & government affairs. He is also a trusted executive used to counseling senior leaders.

Previously Vice President, Global Head Communications and Advocacy for Novartis Oncology (based in New Jersey), Hugues has held various roles of growing responsibilities at Novartis, including Head of Communications and Marketing Operations for Novartis France. He began his career as a public relations consultant in Paris.

Currently married and father of two beautiful children, Hugues holds a Ph.D in Medical Ethics from Paris Sud-11 University. He is an expert of the ethical considerations related to the role and place of family caregivers in the healthcare system. He also holds two Masters degrees, respectively in Contemporary Business History (from Paris I Sorbonne) and Communications (from CELSA – Sorbonne).

Welcome to the CM Murray LLP podcast channel where we discuss a wide range of topical issues in relation to partnership and employment law.

CM Murray LLP is a leading partnership, employment and regulatory law firm based in London. 

We advise US and UK law firms and partners, hedge fund and investment management partners, US and other multi-national employers, senior executives and founders on a range of UK partnership and employment law issues.

New tracks tagged #LLPS