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Partnerships
are similar to sole proprietorships in that the owners of the business
personally own all the assets of the partnership and are personally responsible
for the liabilities of the partnership. The basic difference between a
partnership and sole proprietorship is that a partnership has more than one
owner (referred to as a partner). The partners can employ others to help in operating the
business, but they usually have a hand in the operation or management of the business.
Ontario
law recognizes two types of partnerships: General Partnerships &
Limited Partnerships. In a General Partnership all partners both own
the business and are jointly and severally responsible for the liabilities of
the partnership up to the total value of their personal assets. In a
Limited Partnership all partners own the assets of the business, but certain
partners can limited their liability to the value of their contribution to the
partnership. There are few formal legal requirements to establish
partnerships, and they are much cheaper to create than
corporations. An Ontario partnership must have its registered
business address located within the Province of Ontario.
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LEGAL
REQUIREMENTS for PARTNERSHIPS
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A partnership is established when
more than one individual carries on business in common with the intention of
making a profit. There are no formal filing requirements for General
Partnerships. Limited Partnerships, are created by statute and a
Partnership Declaration under the Limited Partnerships Act must be filed
to establish the Limited Partnership.
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In most partnerships a
Partnership Agreement is drafted to define the rights and responsibilities of
the partners with respect to the Partnership. Although this is not
required by law, it is advisable, especially if the partners do not want all of
the provisions of the Partnerships Act or Limited Partnerships Act
to apply to their business.
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Partnerships may have to obtain certain licenses which are
required for specific types of businesses. Licensing requirements vary
depending on the specific region in which the partnership will operate.
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If the partnership will operate under a
business name other than the owner's, the business name must also be
registered under the Business Names Act. This registration is relatively
simple to complete and must be renewed every five years. Although there is
no formal legal requirement to conduct a search of a proposed business name, it
is a good idea to do so to be sure that the name which you want to use is not
identical or confusingly similar to another business name already
registered. This will avoid potential law suits down the road.
We provide
advice and assistance in many aspects of starting a partnership. Refer to our legal services chart below to help you
decide which services you require.
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Click here to order any of the legal services listed
below.
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LEGAL SERVICES |
| Service |
Description |
Cost |
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Partnership Business
Name Registration |
Registration of a business name
with the Government of Ontario. This registration is valid for 5 years and
must be renewed. A Master Business License will be issued within 2 weeks
of registration.
Includes (if required):
Workplace Safety and Insurance Board, Ontario Health Tax Registration |
$60.00 plus $60.00 government
registration fee every five years |
| NUANS Name Search |
Search of
registered Corporate & Business Names in Ontario
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$34.99 plus HST |
| Business Permits
& Licenses |
Research &
Registration for Business Permits & Licenses
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Varies
(we will provide a quote based on the number of permits required) |
| Federal Business
Number Registration |
Registration with
the Federal Government for GST/HST collection, payroll source deductions (for
employees) & import/export account
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$50.00 |
Click here to order any of the services listed
above.
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