Plus tax - Total: 73.45 CAD
What is a Partnership?
To put it simply, a partnership is a business created by Individuals through pooling assets and liabilities together. Unlike an incorporated company, the partners and the partnership are not a separate legal entity.
How do I form a Partnership?
There is no formal requirement in forming a Partnership, although partnerships engaged certain business, such as trading, manufacturing or mining, will have to register and obtain business licenses. Under the Partnership Act, individuals may be found to be partners if they are “carrying on business in common with a view of profit”.
What are the advantages of forming a partnership?
Forming a partnership is relatively simple and inexpensive in comparison to incorporating a company. Income of the partnership flow directly to partners and there may be tax benefits to the partners as the partners will be able to offset the partnership’s loss against their other personal income.
What are the disadvantages of forming a partnership?
One of the major disadvantages in forming a Partnership instead of incorporating a company is that Partners may be fully liable for the losses of the partnership and could be held liable for wrongs done by other partners in relation to the partnership.
What is Partnership Agreement?
A partnership agreement is an agreement of the partners setting out the rights and duties of each partner with respect to the partnership. The partnership agreement can provide for, among other things, the election of a managing partner, how partnership meetings will be conducted and what will happen when one of the partners wishes to withdraw from the partnership. Although the Partnership Act sets out the rights and duties of the partners, the Act is not comprehensive. The Partners can enter into a Partnership Agreement to deal with the aspects of the Partnership that is not covered under the Partnership Act or to vary their rights and obligations to something other than what is set out in the Act.
Is it necessary to have a written Partnership Agreement?
Although it is not mandatory to have a written partnership agreement, having one will ensure that the partners are fully aware of their respective rights and duties under the Agreement and help avoid future disputes.
Why use Onion Legal’s Partnership Agreement as your Partnership Agreement?
Onion Legal’s Partnership Agreement has been thoroughly reviewed by B.C lawyers to ensure that it meets with the strict requirements of the laws of British Columbia. Also, it contains clauses to ensure that each Partner is fully aware of the Partner’s rights and obligations in relation to the Partnership and to ensure efficient management of the Partnership’s business. Our carefully drafted Partnership Agreement has clauses dealing with the following matters:
- Initial and additional capital contributions by each partner;
- Percentage of Partnership Interest held by each partner;
- Fiscal period, financial statements and banking arrangements for a Partnership;
- Sale and Encumbrance of each partner’s Partnership Interest;
- Indemnification of each partner;
- Management of the Partnership, including the manner of electing and removing a Managing Partner;
- Admission of new partners and withdrawal from Partnership;
- The manner of valuing Partnership Interest; and
- The manner and time of the dissolution of a Partnership.
How do I commence the process of creating my Partnership Agreement?
Simply click on the link below and purchase our Partnership Agreement, fill out a simple questionnaire. When you submit your questionnaire, your Partnership Agreement will be assembled and emailed to you. It is that easy!