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’

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

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more Read more
tag-icon Tax Returns
Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more Read more

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Read more Read more