Employment | Salaried Partners & LLPs

Typically, partners in traditional partnerships or members of an LLP share in the profits of the partnership or LLP. However, sometimes LLPs or traditional partnerships hold out certain individuals to be partners, yet pay a salary instead of a share of the LLP’s or partnership’s profits. The taxation of these “salaried partners” and the extent of their employment rights is a complex area on which we advise regularly.


LLPs are hybrid business structures combining the protection of limited liability of private companies with the advantageous tax treatment of traditional partnerships. Widely used by professional services clients, we are seeing a growing number of businesses in other sectors adopt this structure. We advise on and assist with the conversion of an existing business into an LLP and are experienced in providing commercial and HR advice relating to LLPs, as well as tax advice.

Work includes:

  • advising a Member of an LLP on a career move to a competitor. This involved negotiations both for the terms of his exit, the obligations to be owed by him and his new employer and the new terms of his engagement

  • advising a number of LLPs on their proposed structures and the status of their proposed members or partners



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