LLP for Stock trading

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This discussion clarifies the suitability of a Limited Liability Partnership (LLP) for stock trading. It addresses key concerns regarding how salaries paid to LLP members are taxed, the tax rate on remaining profits, and provides examples of deductible business expenses to manage taxable income. The process for amending member share percentages and capital contributions is also outlined, involving a fresh agreement filed with the MCA.

RP (Querist)
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26 July 2023 Sir,
I want to open a LLP company with 3 members of different %age sharing. My query is; Objective of this LLP will be Stock trading;

1) Salary paid to all 3 members of LLP taxable slab?
2) Profit balance with LLP after salary paid to Members tax slab rate?
3) Example of expenses to make balanced taxable income to non taxable?
4) Change in %age of Sharing / capital by Members; how to amend?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 July 2023 1 Respective slabs applicable to the members.
2 30% tax payable.
3 Actual expenses like office rent, office expenses etc.
4 Make fresh agreement and file it with MCA portal.

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