How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

Hi I have an LLP, comprising 2 partners. One partner wants

Resolved Question:

Hi

I have an LLP, comprising 2 partners. One partner wants to leave, can I simply replace him with a silent partner (my husband).

I have in the back of my mind that both partners have to have the aim of making profit, however my husband would not contribute to day to day business, which is accountancy, but would act as Consultant on IT issues as required. He would have a minimal role and a 5% share of partnership. He would not be likely to earn any revenue from the partnership, apart from 5% of profits at year end.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

A normal partnership requires to traders to enter into business together with the aim of making profit.

This is not the same as an LLP, an LLP is an incorporated entity. If you want to have an LLP member who does not contribute practically to the LLP then this is fine.

You may at least want to give him a consultancy agreement to justify his 5% payment for tax purposes.

Can I assist any further?

Kind regards

AJ
Alex J. and other Law Specialists are ready to help you

Related Law Questions