How is LLP profit calculated??
A partner’s share of profit in an LLP is determined as a percentage of the firm’s net profit. This amount is usually paid annually or as specified in the partnership agreement. The profit share can be fixed or vary depending on the partner’s performance, contribution, or other agreed terms. It ensures fair distribution of earnings among partners and reflects their role and responsibilities within the LLP that has LLP registration in salem, as outlined in the partnership deed or mutual agreement.