How to Set up a Limited Partnership Agreement In Canada

by Danielle Bloom

0 min read

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.

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