Individual LLP accounts may include business banking accounts, membership accounts and tax accounts. Like corporations and other business structures, a limited liability partnership is a business entity and, as such, may establish accounts with other business entities. For example, business credit relationships and utility billings may also be established under LLP accounts.
As limited partnerships and limited liability partnerships are primarily used to conduct certain types of business transactions, most jurisdictions will also allow these entities to possess individual government tax identification numbers. With this information, partners are able to establish LLP accounts for banking purposes, such as business checking, savings and investment accounts. While it is necessary for one or more partners to physically conduct banking transactions, LLP accounts like this help partners keep cash reserves separate from personal ones, as well as maintain orderly business banking statements that are helpful for private and public accounting records.
Memberships for things like discount vendors and private organizations may sometimes be established under LLP accounts. The likelihood of being granted access to this type of LLP account depends largely on the regulations of the issuing organization. It is not unusual, however, for exclusive membership accounts to be granted to a limited liability partnership and, thus, giving individual partners access to special discount purchases for business items, as well as information and business networks that serve as a benefit to the partnership.
Variations of the LLP’s structure exist in several countries throughout the world. In each jurisdiction, different rules governing these entities and the type of accounts they can participate in vary. In places like the United States and the United Kingdom, limited liability partnerships are not subject to full business taxation. These entities are, however, required to pay an annual tax to the jurisdiction where these partnership agreements originated. LLP accounts are established with the appropriate governing bodies in these countries in order to enable and track tax payments.
Utilities and business credit may also be established under LLP accounts. Sometimes a partnership may need to apply for credit to make business purchases on behalf of the LLP. The terms of accepting such credit usually must first be agreed upon by principal partners. In some instances, one or more partners may even be required to act as a guarantor before credit approval is granted. A business operating as an LLP may also be allowed to open utility accounts in the name of the partnership.
