Partnership Registration
In business registration terminology, a major vast of people imply General Partnership when they use the term “partnership”. However, in business world, another form of partnership exists, which is called Limited Partnership. In short, a general partnership applicable when both partners have administrative, management and operation control on the business. On the other hand, a when the partnership business is operated, administered and managed by only the single partner and the other partner has no administrative, management or operational control (except contributing capital only), a limited partnership comes into place.
Service Fees $49
Government Fees Included
Add-on Available: Pick & Choose
Name pre-search
Order review by a specialist
One-year service support
Service Fees $199
All Provinces
Two Hours of Service Available
Ontario Partnership Business Registration
A. General Partnership:
General Partnership in Ontario is a business structure that is formed by two or more individuals who carry on business together.
In General Partnership Business multiple owners share all profits, losses, and responsibilities with unlimited personal liability.
Unlike a corporation, General Partnership does not have a separate legal existence from its partners. This means partners are personally liable for their debts and obligations of the business.
Formation of a General Partnership are relatively simple and inexpensive to form, but they come with the risk of unlimited personal liability for the partners. It’s important to carefully consider the potential risks and benefits before choosing General Partnership as your business structure
B. Limited Partnership (LP):
Limited Partnership (LP)in Ontario is a business structure that combines two features one is corporations and another is partnerships.
That means it combine general partners with limited partners who have limited liability for business debts.
It involves two types of partners:
1. General partners: General partners manage the business and have unlimited liability for its debts, similar to a general partnership.
2. Limited partners. . Limited partners, on the other hand, invest capital but have no management role and enjoy limited liability, only up to their investment.
This structure offers flexibility for business owners who seeking investment while protecting passive investors from personal liability. However, forming and maintaining Limited Partnership involves more complex regulations compared to a general partnership.
C. Limited Liability Partnership (LLP):
Limited Liability Partnership in Ontario is a business structure that is similar to Limited partnership business. But in LLP all partners have limited liability for business debts. basically formed by professionals like lawyers, accountants, and architects who wants to limit their personal liability for malpractice claims. That means everyone is liable only for their business activity. One partner is not liable to another malpractice.
This business structure protects its partners, like corporation, from personal liability for business wrong, debts and obligations. However, unlike a corporation, it retains the flexibility in management structure of partnerships.
However, compared to a general partnership, forming and maintaining an LLP involves more complex regulations.