Are LLPs going strong or not? Is it now firmly established that they are a ‘good thing’?

The main reasons for not converting have not changed. There are doubts in the minds of partners in some law firms that public exposure to their accounts creates a number of problems which have nothing to do with accounting treatments.

Equally, the advantages so often expressed for LLP status, for example in respect of tendering and partners’ liability, send out a commercial message about being ‘up to date’, quite apart from the accounting advantages of conversion.

Other issues which seem to occupy the minds partners include:

  • Clients (and the firm’s competitors) may not have realised how small the firm is and will therefore take their business elsewhere;
  • The bank may ask for a debenture as security to replace personal liability as a partner, therefore making the transfer pointless.

Statistics confirm only a gradual move toward LLP status. Why hasn’t the vehicle been seized more enthusiastically? What is it that makes firms take the plunge?

Surely it can’t be lethargy holding people back, can it?

Any insight into readers’ experiences would be most welcome.