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

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more Read more
Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more Read more