{"id":9217,"date":"2022-02-20T20:34:34","date_gmt":"2022-02-20T20:34:34","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=9217"},"modified":"2024-04-12T19:00:23","modified_gmt":"2024-04-12T18:00:23","slug":"distributing-profits-limited-liability-partnership","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/distributing-profits-limited-liability-partnership\/","title":{"rendered":"Distributing profits in a limited liability partnership (LLP)"},"content":{"rendered":"
\n Last updated: 12 Apr 2024<\/strong>\n <\/div>\n \n

Flexible profit distribution is one of the benefits of setting up a limited liability partnership (LLP). But how do you determine each member\u2019s share of the profits? How and when are LLP members paid? How are LLP profits taxed? We\u2019ll take a look at all of these queries below, which will give you a better understanding of the limited liability partnership structure in the UK.<\/p>\n

Dividing LLP profits and making drawings<\/h3>\n

Limited liability partnerships have fewer internal governance restrictions placed upon them than limited companies. They do not have articles of association, so they enjoy greater freedom in terms of organisational structure and profit distribution.<\/p>\n

LLP members (partners) decide between themselves how to divide profits and when to make \u2018drawings\u2019 (pay themselves). Generally, these arrangements will be set out in an LLP agreement and can be changed with relative ease, at any time and as often as required.<\/p>\n Our LLP Package - form a limited liability partnership today <\/span><\/a>\n \n

On account of this flexibility, profit-sharing arrangements in a limited liability partnership vary widely and depend on a number of factors, including:<\/p>\n