Michael Beart and Francis Fitzpatrick QC ask when a partner is deemed to be an employee in a trading LLP under the salaried member rules
Since its introduction in 2000, the limited liability partnership (LLP) has been a success. The number of LLPs has grown year on year until recently when the trend reversed – a reversal coinciding with the development of the salaried member rules.
Introduced following heavy lobbying by the UK’s leading accountancy firms, the rate of growth of LLP structures had until recently far outstripped both traditional limited partnership (LP) and limited company structures. Favoured for its combination of flexibility and limited liability status, the LLP structure was increasingly adopted by owner-managed professional services firms, such as accountants and lawyers, and other industries such as asset management.