Legal implications of LLP membership

Copyright © 2026 LexisNexis
Produced by Tolley in association with Jackie Barker of Wells Associates
Owner-Managed Businesses
Guidance

Legal implications of LLP membership

Copyright © 2026 LexisNexis
Produced by Tolley in association with Jackie Barker of Wells Associates
Owner-Managed Businesses
Guidance
imgtext

This note explains the legal implications and requirements in respect of being a member of a limited liability partnership (LLP) and provides guidance on the issues surrounding the rights and obligation of members.

The tax implications of being a member of an LLP are covered in the Limited liability partnerships (LLPs) ― overview guidance note.

LLP members’ legal rights

Each member is an agent of the LLP and can bind it, so any contract signed by a member on behalf of the LLP binds the LLP as a separate legal person. Each member therefore has a duty to act in the best interests of the LLP and its other members.

Additional legal requirements are placed on the designated members of an LLP, see the How to set up an LLP guidance note.

Each member will have the benefit of limited liability in a very similar way to shareholders in a company. The extent of each liability is effectively restricted to their members’ interest and creditors have no recourse to the members’ personal assets. This

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Jackie Barker
Jackie Barker linkedinicon

Tax Partner at Wells Associates , Corporate Tax, OMB, Employment Tax, Personal Tax, VAT, IHT Trusts and Estates, Accounting

I have worked in tax since becoming an associate of the CIOT in 2004, having previously qualified as a member of ACCA.As tax partner with Wells Associates I advise on all aspects of direct taxation including personal and corporate planning. We work with a wide range of individuals and owner-managed businesses offering guidance and support at all stages, from assisting with compliance matters through to advising on more complex strategic matters and providing tax efficient solutions.

Read moreRead more
Powered by Tolley+™
  • 18 Dec 2025 10:40

Home/ Tolley Tax Guidance/ Owner-Managed Businesses / Advising partnerships

Popular Articles

Employment Tax

Loans provided to employees

Loans provided to employeesEmployers sometimes provide their employees with loans, sometimes charging interest and often not, either as part of the reward package or to help the individual meet significant expenditure. For example, it is common to provide loans for the purchase of annual travel

14 Jul 2020 12:11 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Settlor-interested trusts

Settlor-interested trustsWhat is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor

14 Jul 2020 13:38 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more