English

Partnership agreements

Region: Ontario Answer # 214

If you decide to form a partnership, you should put a partnership agreement in place. A partnership can exist without having a formal, legal partnership agreement, but such an agreement can help you avoid problems.

A partnership agreement establishes rules about how the business is going to be run. It usually includes such things as:

  • who the partners are,
  • what bank the business will use,
  • how the profits or losses of the business are to be divided among the partners,
  • what the capital contribution of each partner will be,
  • what the role and responsibilities of each partner will be, and
  • how the partnership can be dissolved.

Establishing these business details at the beginning of a business relationship can help avoid disagreements in the future.

Many of these details can be decided between the partners before they approach a lawyer to finalize the agreement. However, creating a partnership agreement is a detailed legal process. You should have a lawyer help you create the agreement, or at least have a lawyer review the agreement before you sign it.

More information about starting a business or forming a partnership in Ontario can be found at ServiceOntario, or visit the Government of Canada, Canada Business Ontario.

For legal advice and assistance with forming a partnership and partnership agreements, and for all other business matters, contact our preferred business lawyers, Singer Business Law .

For corporate supplies and help with business and corporate name searches, registrations and filings, contact our preferred service provider, Carswell Legal Solutions .


Singer Aug 2017 Ontario Business 214Singer Aug 2017 Ontario Business 214

 



								

You now have 3 options:

Was your question answered?


Yes    No


What information would you like to see added?


Submit an Edit Request










What are your changes?*

Website by Turnbull & Co.

Top

Page loaded. Thank you