Limited Liability for Small, Closely-Held Businesses

The article assesses the likely impact of the newLimited Liability Partnership envisaged by Limited LiabilityPartnerships Bill. It examines the present choices oforganisational form available to entrepreneurs in English Law andconsiders arguments for and against limited liability bothgenerally in relation to contractual and tortious claims andspecifically in its application to small businesses. The articleconcludes that the Limited Liability Partnership may offerattractive flexibility for small businesses but that there isstill some uncertainty surrounding its provisions, particularlyin relation to members' liability. These must be adequatelyresolved if the new model is to prove an attractive alternativeto incorporation.