2017-03-29 00:00:00 Partners and Related Parties English Discover the process of registering your business partnership to operate legally in provinces and territories. https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/06/08213939/man-and-woman-shake-hands-upon-forming-partnership.jpg Registering A Business Partnership

Registering A Business Partnership

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Starting a business in Canada that includes two or more people is considered a partnership arrangement. Under Canadian tax laws, you can choose three types of partnership arrangements: general partnership, limited partnership, and limited liability partnership. It’s essential to have all legal contracts completed ahead of registration to avoid mistakes. Save time and avoid disappointment by conducting an online search of registered businesses. This lets you check to see if your desired name is already taken. If another business is already using that name, you need to brainstorm a completely unique business identity. Your new company may or may not need an official business number (BN) to operate in your province, or nationally. Business numbers are tied to tax programs such as the goods and services tax and harmonized tax. If your company has no intentions of hiring employees, you can usually skip the BN. However, if you are hiring staff and plan to sell a certain amount taxable goods, a BN for each program is mandatory. Partnerships are required to register with provincial and territorial government agencies. Keep in mind that each territory has its own registration guidelines. Registration involves filling out the required paperwork, including the BN number (if applicable), and paying a registration fee. In return, you receive a Master Business Licence. Your MLB is legal proof that you’re authorized to operate your business. Online registration is available in most provinces, or you can fill out paper forms and send them via postal mail to the appropriate government office. Registering your business partnership goes smoothly when you and your partners choose the right legal structure, determine if a BN is necessary, and create a unique business name.

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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