LAW 122 Lecture Notes - Lecture 6: Limited Liability, General Partnership, Limited Liability Partnership
28 Jan 2016
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Law generally applicable to businesses apply to sole proprietors as well: provincial registration of business name. Only if name other than name of human. Advantages simple: simple to start, simple to file taxes, unlimited personal liability, money raised only by personal borrowing, both problems grow as business grows, suitable for small businesses. A partnership exists when two or more people carry on business together with a view to a profit. Partnership creation automatic when relationship begins: no formalities are required: e. g your friend gets the shovel, you shovel the snow, you split the money you make. Engaging in ongoing activity (not just one project) Holding each other out as partners or not objecting to such representation. Income to partnership is personal income to partners. Ontario partnership act: provides default rules, which can be supplemented or modified by, for example: termination of partnership partnership agreement. By notice, death or insolvency or partner.
