The response of the government was set up the LLP structure which is rather similar to the Limited Liability Corporation structure in the states – LLCs.
This structure can be used by anyone, either in place of, or in addition to, a limited company.
One common structure for LLPs is for one of the members (partners in an LLP are called “members”) to be a limited company. This allows profits to be allocated to the limited company following which other members can withdraw the profits as dividends. This can have tax benefits.
Because it is a partnership, an LLP has to distribute all its profits to the members at the end of the year.