2017-01-10 00:00:00Partners and Related PartiesEnglishLearn about the legal concept of partnerships for use in business and some of the forms it can take in Canada.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/01/business-partners-pose-together.jpgWhat is a Partnership?

What is a Partnership?

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A partnership is one of the legal structures that can be used to conduct business, along with sole proprietorships, corporations, and others. It is a grouping of individuals or corporations that agrees to contractually come together to achieve a particular business goal. Usually, there is a written partnership agreement explaining the roles and responsibilities of the partners and the financial parameters of the partnership. From a tax standpoint, a partnership is usually considered a flow-through entity, which means it is the partners who report the income directly. This can be useful for startups that expect losses early on and want to pass on the deduction of those losses directly to the partners.

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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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