Knowledge Center

Allocating Losses and Profits in an LLP

If there is no partnership agreement, then income, losses and gains are allocated proportionally based on the partnership interests of each partner. Partners can agree among themselves as to how income, losses, and gains will be divided among the partners. The partners then report the allocated amount on their individual income tax returns and pay taxes accordingly.


Banner Icon Make today the day you start something amazing. Form your Partnership. Get Started

Start your own business and take control of your life right now

Over 1 million businesses have trusted us to get started.
Get a personalized legal solution that’s just right for you.

LegalZoom - Here to help