LAW 122 Chapter Notes - Chapter 21: Limited Liability Partnership, Limited Partnership, Sole Proprietorship
22 Feb 2016
School
Department
Course
Professor
Document Summary
Sole proprietorship: no separation between business and proprietor. Proprietor is: entitled to all income, liable for all obligations, assets available for business debts, business income loss on personal income, cannot be employee of business. Disadvantages: unlimited personal liability, money raised only by personal borrowing, both problems grow as business grows. Legal requirement: provincial registration for business name (only if name is different fro personal name, business licence (depending on type of business) Exists when 2 or more people carry on business with a view for profit. Partnership creation is automatic when relationship begins: no formalities required: limited liability partnership (llp, limited partnership. Partnership characteristics: no separation between partner and partnerships, partners have unlimited personal liability, income to partnership is personal income to partners, ontario partnership act: Provides rules, which can be supplemented or modified by partnership agreement: each partner can commit the partnership to obligations. Ending a partnership: unless partners agree otherwise, default termination rules are:
