How is Limited Liability Partnership Taxed?

An LLP has a further advantage over an LLC, in respect of taxes. You will not be subjected to double taxation, in which your business is taxed and then you are also taxed for the profits you take out of the business, in effect being taxed twice. Instead, in a Limited Liability Partnership the profits and losses are passed through to the individual partners who then file there own tax return forms.

However, an LLP still has to file a tax return for the partnership you do not pay any taxes on the profits as this will be dealt with by the individual tax returns.