A relationship between two or more individuals, corporations, trusts, or partnerships that join together to carry on a trade or business is a partnership.

Published by Zoom Startups on November 10th, 2021.


The resources each partner contributes to a business partnership can be in the form of money, labour, property, or skills. The business profits or losses are generally distributed among the partners established on the partnership agreement. All partners share the same risks in a business operation, but may not similarly share the business's profits, losses, or liability. The amount of liability each partner has hinges greatly on which kind of partnership is created.

Our professional consultant at Zoom Startups can assist with the steps you should take before actually starting your partnership such as:

Ø  selecting a business structure

Ø  creating a business name

Ø  determining the availability of your business name

Ø  registering your business name

Ø  registering for licences, taxes and relevant permits

Ø  complete a partnership agreement with the assistance of a legal professional

Ø  open a bank account with authorized signatories

have a target date to start your business

There are basically three types of business partnerships in Canada:

X    General Partnership is the most common. In a general partnership, each partner is fully personally liable for the debts, contractual obligations, and torts resulting from the partnership's operation. If you are a partner in a general partnership, you could be personally sued for something that happens in the business. Our certified expert can advise on your agreement.


X    Limited Partnerships are often set up with a corporation as the general partner and two or more individuals as limited partners. A partnership agreement is crucial to clarify management accountability, ownership and profit distribution. A limited partner also known as a "silent partner" gives financially and may sometimes offer advice, but is not otherwise involved in the business.  

Most limited partnerships may:

Ø  be operated by a single general partner with unlimited liability but will be supported by other “limited partners”

Ø  have a single general partner who gets a bigger share of the earnings in exchange for increased contributions and risk

Ø  have limited partners who contribute capital but cannot be involved in the company’s day to day management

have a cap on the amount of capital they contribute which limits their liability

X    Limited Liability Partnership (LLP) offers the partners more liability protection than they would have as general partners. For example if someone wanted to sue the partnership, only the assets of the partner who worked with that client would be at risk. The assets of the other partners would be protected. LLPs are available in all provinces in Canada and are governed by provincial legislation. The protection provided differs from province to province.


In most provinces, LLPs are only allowed in high-risk professional environments such as lawyers, accountants, architects, or doctors, where the daily business activities of each partner have minimal overlap. We are qualified consultants who can assist with you getting your business off to a good start. We can help with your agreement or contract and ensure that you are your interests are protected. Contact us at Zoom Startups so you can begin your successful business! 

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