LAW 122 Study Guide - Midterm Guide: Canada Business Corporations Act, Limited Liability Partnership, Contract
16 Apr 2016
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Business income or loss = personal income (for income tax purposes) Cannot be employee of own business, however can employ others. Disadvantages: unlimited personal liability -- personally liable for all torts and breaches of contract -- including all torts/breakers committed by employees (general) partnership: Automatically created when relationship begins, no formalities are required: limited partnership (lp) Liability is limited to the amount of his/her investment in partnership. Only passive investor -- does not have any involvement in running the business. Can be employee of the business: limited liability partnership (llp) Available for only specific professionals (e. g. , lawyers and accountants) Limits liability of the partners for professional negligence of other partners. Can only sue and recover damages from the partnership and the partner that committed the tort/breach but not from any other partners. Partnership 3 part test: two or more people, carrying on business together, with a view to a profit with the intention to make a profit.
