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.