2016-12-30 00:00:00Partners and Related PartiesEnglishDiscover the essential components of a limited partnership agreement. Learn how to begin setting one up, in addition to, their advantages...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Coworkers-Discuss-Limited-Partnership-Agreement.jpgHow to Set up a Limited Partnership Agreement In Canada

How to Set up a Limited Partnership Agreement In Canada

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Most businesses entities in Canada are sole proprietorships. If you don’t want to be the single operator and owner of your company, consider setting up your business as a partnership. There are three kinds of partnerships:

  • General partnerships
  • Limited partnerships
  • Limited liability partnerships

Whether you can legally establish your business under anything other than a general partnership depends on the industry and the territory or province where you intend to operate. A limited partnership allows a person, known as the limited partner, to contribute to the firm financially without having a say in the company’s operational or managerial decisions. The benefit of this arrangement is that your liability to creditors is limited to only the amount you invested in the company.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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