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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3840
Experience:  Solicitors 2 years plus PQE
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Hi I have an LLP, comprising 2 partners. One partner wants

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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.

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

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