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Difference between revisions of "Forming a Partnership"
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{{Dial-A-Law TOC|expanded = commercial}} | {{Dial-A-Law TOC|expanded = commercial}} | ||
If | If you’re starting a business with someone else, a partnership is an option to consider. They can work well for real estate businesses, professionals and new businesses. Learn what’s involved. | ||
Understand the legal issues | |||
Pros and cons of a partnership | |||
A partnership is a legal entity formed when two or more people — or companies — carry on a business together, intending to make a profit. It doesn’t matter if they make a profit. The law can find that a partnership exists even if it doesn’t make a profit. | |||
A | |||
Advantages | Advantages | ||
Partners can get personal tax exemptions and use partnership expenses as personal tax deductions during the startup phase of a new business. Shareholders in a company can’t do these things. Later, when the business grows and has greater risks, it may be good to convert the partnership to a company. | Partners can get personal tax exemptions and use partnership expenses as personal tax deductions during the startup phase of a new business. Shareholders in a company can’t do these things. Later, when the business grows and has greater risks, it may be good to convert the partnership to a company. | ||
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See the Ministry of Finance small business website. | See the Ministry of Finance small business website. | ||
Also see the provincial government’s Resource Centre for Small Business. | Also see the provincial government’s Resource Centre for Small Business. | ||