RSM225H1 Lecture Notes - Lecture 2: Professional Corporation, Sole Proprietorship
Document Summary
From last week: what are the legal structures used to run your business? (sole proprietorship, partnership, corporation). If top 4 requirements are met, but corp is incorporated then obvs not a partnership. Personal liability: partnership means anyone partner is 100% personally liable (jointly and severally each partner can be liable for whole amount of debt) Fiduciary duties of partners to each other: This can often screw over the partners in that the liabilities are accelerated, due at the moment the partnership breaks up). Gpp automatically terminates on death, bankruptcy or insolvency of any partner. Same registration as gpp (business names act) Formation: must meet gpp requirements, register as lp and must have at least one general partner and one limited partner (if this last criterion is not met, in that instant you no longer have lp) Liability: general partners: same as gpp for general, limited partners: different than.
