General Partnership

Sole Proprietorships vs. Partnerships vs. Corporations

A partnership is like a sole proprietorship but with 2 or more people. .

A corporation is a completely different legal structure that you may have heard about. Corporations are the preferred legal structure for businesses. The principal advantages of a corporation include limited personal liability protection for its owners, that it can exist beyond the lifetime of the founder(s), offers the most flexibility to raise capital from investors and can provide tax flexibility and advantages. To learn more about corporations click here.

To find out more about which business structure is best for your click here.

Partnership Disadvantage

However, like a sole proprietorship, one of the primary disadvantages to choosing a general partnership as your legal structure, includes the unlimited personal liability of each partner for all of the debts and obligations of the partnership. In other words, every partner is liable for all the debts incurred by the other partners while acting in the course of business, regardless of the capital contribution of individual partners. Also, the owner may be liable for the actions of employees in the course of their employment.

Different Types of Partnerships

There are other types of partnerships such as Limited Liability Partnerships and Limited Partnerships which may under certain circumstances shield the partners from personal liability of the partnership debts and obligations. Contact a competent lawyer for advice on which best suits your circumstances. CorporationCentre.ca does not offer legal advice of any kind. Moreover, please note that we do NOT file registrations for limited liability partnerships or limited partnerships.

Trade Name and “Doing Business As” (DBAs) Registrations 

Most jurisdictions require that sole proprietorships register with the relevant government department or authority under the business name it is operating under. This is sometimes referred to as a “Business Registration”, “Business Name Registration” “Trade Name” or “Doing business as (DBA)”. Of course, you do have to get the same business licenses and permits as any other company that goes into the same business.

Name Search before Registering your Business

To register your business, a business name search report is generally required by provincial governments. These reports are used to determine the availability of a business name by searching the relevant databases or registries listing any similar or possibly confusing existing business names and trademarks. In other words, you need to make sure that no one else has already registered the business name you would like to use for your business. We can take care of this at the same time we process your business registration or you can do it before hand by clicking here to order your business name report.

Business Registration does not Replace Tax Registration

Its important to know that when you register your business name with the government’s registration division, you still have to register with the tax department. You may be required to apply for GST/HST and PST and payroll tax numbers (if you have employees) and Import/Export tax numbers.