Partnership
Registration
$65*
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 |
| 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 |
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 |
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 | 5 to 7 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.