I'm setting up a new business and torn between forming a private limited company or a limited liability partnership (LLP). Can someone explain the practical legal differences in terms of director liability and annual compliance burdens?

In the UK, the key differences between a private limited company (Ltd) and a limited liability partnership (LLP) are as follows:

• Liability: In a private limited company, directors have limited personal liability for company debts, but they can be held personally liable in cases of wrongful trading or breach of duties under the Companies Act 2006. In an LLP, members (partners) have limited liability for the firm's debts, but they might face personal liability for their own negligence or misconduct.
• Annual Compliance: Private limited companies must file annual accounts and a confirmation statement with Companies House, hold general meetings, and maintain statutory registers. LLPs have similar filing requirements but often have fewer formalities, like no requirement for annual general meetings, making them slightly less burdensome administratively.