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Partnership is used “when two or more persons carry on business together with a view to a profit” (Ontario Partnership Act). It may arise in relation to a single transaction, time-limited activity (Spire Freezes Ltd v The Queen) or by filing government forms (Prince Albert Co-operative Assn v Rybka) or co-ownership of real estate, active involvement in management, profit sharing and receipt of rent (AE LePage Ltd v Kamex Development Ltd).  


Three are types of partnerships: (1) General Partnership, (2) Limited Liability Partnership (“LLP”), and (3) Limited Partnership. In Ontario, LLPs may be formed only by professionals whose governing legislation permits LLPs to practice the profession only (e.g., lawyers, chartered accountants, and certified general accountants) (Anthony VanDuzer). 

Advantage vs. Disadvantages

Other Things to Consider: 

  • Not all partners may have the authority to act on behalf of the partnership (OPA, s. 11). Namely,  Employment status-wise, partners cannot enter into a contract of employment with the partnership. Finally, personal Income Tax calculations are done for reporting purposes.  

  • As for the legal requirements, the business name registration is mandatory (OBNA, s. 2(3)).   

  • Government registration fee is the same as for the sole proprietorship. Additionally, there is an identical licensing requirement (Master Business Licence).   

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