Partnership

Partnership Registration
$59*

partnership order >>

When you have two or more individuals, corporations, trusts, or partnerships wanting to start a business together you could registering a partnership.

Partners are not required to sign any agreement to create a partnership. A simple verbal agreement is sufficient to form it. But in order to protect partners in the event of a disagreement or dissolution of a partnership, a partnership agreement should be prepared.

We are able to register a Partnership in the following provinces:

Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan

Partnership Information

Province Time Frame for Registration

Validity of the
Registration and Renewal

Alberta 1 to 2 business days No annual renewal fee,
registration is valid until
you file dissolution
British Columbia

Regular Processing 10 to 15 business days

Expedited services in 1 to 2 business days
for an additional fee

No annual renewal fee,
registration is valid until
you file dissolution
Manitoba

Regular Processing 5 to 10 business days 

Expedited services in 1 to 2 business days
for an additional fee

Valid for 3 years and then
requires a renewal
New Brunswick 7 to 10 business days Valid for 1 year and then
requires a renewal
Nova Scotia 7 to 12 business days Valid for 1 year and then
requires a renewal
Ontario 2 business hours Valid for 5 years and then
requires a renewal
Prince Edward Island 5 to 7 business days Valid for 3 years and then
requires a renewal
Saskatchewan 2 to 3 business days Valid for 3 years and then
requires a renewal

In a general partnership each partner takes responsibility and becomes personally liable for all the debts and obligations of the business. Thus, each individual partner has unlimited personal liability including liability for the actions of the other partners.

If you are interested to get a limited liability company protecting you from the personal liability for your business, you should incorporate your business.

Benefits and Disadvantages of a Partnership

Benefits Disadvantages
Easy and inexpensive to set up Unlimited personal liability for the business
Flexible with little government regulation Personal liability for the actions of the other partners (this includes actions that may be taken without partners’ knowledge)
New partners can be added easily Lack of continuity in business organization
Risks are shared equally among partners Difficulty in raising additional capital
Minimal working capital required Partners are taxed at individual tax rate, which is much higher than corporate tax rate
Partners are taxed on business earnings in proportion to their share
Business is taxed through partners’ personal income tax, and losses can be used to reduce taxes on other sources of personal income
Wages payable to spouses are deductible from the income of the business

Important Notice:

If you need to discuss your personal situation with a lawyer, chartered accountant or tax advisor, our company is able to refer you to a professional who is able to assist you.