GLP Solicitors is planning on converting to an LLP on 1st August 2024. Here are some frequently asked questions (FAQs) that clients might have regarding the conversion of GLP Solicitors from a partnership to a Limited Liability Partnership (LLP), along with corresponding answers:
1. Why is GLP Solicitors converting to an LLP?
GLP Solicitors has been practicing as a traditional partnership for over 50 years. The partnership is converting to an LLP (Limited Liability Partnership) which are the modern, partnership equivalent of a limited company. Most professional services firms such as lawyers and accountants now use this type of entity. The new partnership will still trade as GLP Solicitors, but will be registered with Companies House as GLP (Bury) LLP. It allows for a flexible management structure, personalised service, whilst providing the partners with limited personal liability.
2. What are the benefits of converting to an LLP?
For clients, the conversion to an LLP means enhanced security and transparency. It ensures that while benefiting from the personalised service of a partnership, they also gain the reassurance that their legal matters are handled within a structure that protects partners’ personal assets. As an LLP, there are reporting requirements to Companies House, giving the public enhanced visibility about the workings of the business. Converting to an LLP also offers partners limited liability protection, which means their personal assets are safeguarded against business liabilities.
3. Will the ownership structure or management of GLP Solicitors change after the conversion?
The basic ownership structure and management of GLP Solicitors will remain exactly the same to that of the partnership. Partners will still have control over the firm’s operations.
4. How will the conversion affect client relationships and ongoing cases?
The conversion will not impact client relationships or ongoing cases. Clients will continue to receive the same high level of service and dedication from GLP Solicitors, with no interruption to their legal matters. Converting to an LLP underscores GLP Solicitors’ dedication to client satisfaction and trust. It demonstrates a proactive approach to strengthening client relationships through enhanced legal protections and a robust operational framework.
5. What legal steps are involved in converting to an LLP?
Converting to an LLP typically involves drafting and filing a conversion agreement, updating internal documents, and complying with relevant regulatory requirements. The only legal step that affects clients, is that we will need you to sign a document transferring the funding agreement between you and the partnership, to the LLP. We will ask you sign such a transfer that is legally called a ‘novation’.
6. Will the name of the firm change after the conversion?
The name “GLP Solicitors” will remain the same after converting to an LLP, as this is a trading name, but this can change depending on the firm’s specific branding and marketing decisions. The underlying entity moving forwards will be called GLP (Bury) LLP.
7. Will there be any changes in fee structures or billing practices after the conversion?
There will be no changes in fee structures or billing practices due to the conversion. Clients will continue to receive transparent billing and fair fee arrangements, ensuring clarity and consistency in their financial interactions with GLP Solicitors. We will need you to sign a document transferring the funding agreement between you and the partnership, to the LLP. We will ask you sign such a transfer that is legally called a ‘novation’.
8. How does the conversion contribute to the firm’s ability to serve clients better?
Converting to an LLP allows for a modern, more agile management structure. This allows the partners to predict, anticipate and react to changes in the market place for the benefit of clients. It also strengthens GLP Solicitors’ ability to attract and retain top legal talent, thereby enhancing the firm’s capabilities and expertise. This translates into better service, innovative solutions, and continued excellence in client representation.
9. What assurances do clients have regarding the continuity of service and commitment after the conversion?
Clients can be assured that the conversion to an LLP is aimed at fortifying the firm’s commitment to providing exceptional legal services. There will be no compromise in the dedication and professionalism with which GLP Solicitors handles their legal needs. We will maintain exactly the same, high-level of regulatory and professional standards as we had before conversion.
10. How will the conversion impact the firm’s future growth and strategic direction?
Converting to an LLP can provide the firm with a more stable platform for growth, investment and career progression, allowing it to attract and retain talented professionals and expand its service offerings. The LLP structure provides a stable foundation for GLP Solicitors’ growth and development by allowing different forms of investment in the business. It enables the firm to expand its service offerings, adopt new technologies, and innovate client-centric solutions, all geared towards enhancing the overall client experience.