How is profit shared in LLP?

Introduction to Profit Sharing in LLP

Learn how profits are distributed among partners in a Limited Liability Partnership (LLP) structure

Capital Contribution and Profit Sharing

LLP partners' shares of profit are typically determined based on capital contribution made by each partner

Profit Sharing Ratio

LLP partners agree upon a profit sharing ratio that determines the percentage of profits allocated to each partner

Active Partners and Sleeping Partners

Active partners who are actively involved in management of LLP usually receive higher profit share 

Salaries, Interest, and Remuneration

Partners may receive salaries, interest on capital, and remuneration as agreed upon in LLP agreement