TORONTO PARTNERSHIP AGREEMENT LAWYER
Building a successful business as partners requires mutual respect and a comprehensive written understanding. The Business Law Group assists business partners from a number of industries with executing detailed agreements and business arrangements.
There are several critical issues which must be addressed in each partnership agreement. Each agreement should identify partners and the procedure for adding new partners. Some agreements we handle require a buy-in at this stage. The duration of partnership will depend on the nature of the provision in the agreement. Unless this duration is appropriately addressed, the death of one partner could terminate the partnership.
We assist businesses with crafting company specific voting privileges on a per capita or weighted voting scheme. In any partnership, the distribution of profits is one of the most important provisions. It is important to avoid a scenario where a partnership agreement will require amending where a change in allocation of compensation arises.
Beyond the obvious provisions in a typical partnership agreement, we assist partners with important management, retirement, withdrawal, death, disability, expulsion and dissolution provisions. A comprehensive written understanding between business partners will provide the authority for business relationships and unforeseen problems, ultimately reducing any future legal costs.
What is a Partnership?
The Partnerships Act defines a partnership as the relation that subsists between persons carrying on a business in common with a view to profit.
Is a Partnership a separate Legal Entity?
Although partners are referred to collectively as a firm and operate under a business name, unlike a corporation, a partnership is not a separate legal entity from the partners who compose it. There are important income tax rules depending on the chosen business model.
Are Partners subject to Liability?
Generally, each partner in a firm is jointly liable with the other partners to the full extent of his or her personal assets for all liabilities incurred as a partner. There are important rules governing liability to creditors for liabilities prior to becoming a partner and upon retirement.