After successfully building an online business as sole proprietor, I decided register my company as Limited Liability Partnership (LLP) company. Now we are two partners. How will we share the profit (do we take as a salary or how? And what should our designation.
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You can distribute profits in the form of "partnership interest" the same way stock dividends function for corporations. Salary is another way to do this but there are limits - Be aware that there may be certain tax implications/benefits to doing one over the other because of capital gains and self-employment taxes. You may want to consult a tax lawyer. Profit distribution should be outlined in your company contract(s) aka partnership agreement. You can find sample contracts at onecle.com. Designation can nominally be anything you'd like, but of course you should use the standard ones - since there are two of you, each of you can be designated as a Partner, co-President, CEO, COO, etc. |
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