Ontario Limited Partnerships (LPs) are an attractive option for entrepreneurs looking to set up a business in Ontario, Canada. They offer a number of benefits, including: Limited liability: General partners have unlimited liability for the debts and obligations of the LP, while limited partners are only liable up to the amount of their investment. Flexibility: LPs can […]
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Formation of Ontario Limited Partnerships (LPs): A Step-by-Step Guide
If you’re considering establishing a business in Ontario and exploring the benefits of a Limited Partnership (LP) structure, you’re on the right track. LPs in Ontario offer a unique blend of flexibility and protection, making them an attractive choice for entrepreneurs. In this article, we’ll take you through the crucial steps of forming an LP […]
Ontario Limited Partnership Formation Checklist
Ontario Limited Partnerships are a species of partnership in respect of which a declaration has been filed in accordance with the Limited Partnerships Act, LP Act). It must be formed between two or more persons and carry on a business in common with a view to profit. An Ontario Limited Partnership broadly resembles a general […]
Canada Limited Partnership Formation Checklist
Canada Limited Partnerships are a species of partnership in respect of which a declaration has been filed in accordance with the Limited Partnerships Act, LP Act). It must be formed between two or more persons and carry on a business in common with a view to profit. A Canadian Limited Partnership broadly resembles a general […]
Limited Partnership Structure Proving Attractive to Foreign Investors
Foreign investors considering establishing businesses in Canada increasingly are weighing the merits of structuring their concerns as limited partnerships. A limited partnership (LP) is a partnership among persons carrying on business in common. It is composed of a general partner (or partners) and one or more limited partners. The limited partners benefit from limited liability. […]
Main rules governing the taxation of Canadian partnerships
Partnership not a person The Act imposes a tax on “persons”. A partnership is not a person, nor is it deemed to be one for purposes of the Act generally. Computation of partnership income The basic regime requires computation of income (or loss) at the partnership level and an allocation of the income (or loss) […]
Canadian Partnerships distinguished from other forms of joint ventures
While the Income Tax Act of Canada provides specific rules governing the manner in which a partnership is taxed, there are no rules that apply specifically to joint ventures. The terms“syndicate” and “association” are also sometimes used to describe a form of a joint venture that is not a partnership. Generally, the CRA’s position (supported […]
Classification of foreign business or investment vehicles as partnerships
The recognition of a business or investment vehicle as a partnership under the laws of a foreign jurisdiction or its classification as a partnership under foreign tax laws does not mean that it will be considered a partnership for purposes of the Act. According to the Canada Revenue Agency (CRA), the status of a foreign […]
What is Recognized as a Partnership for Purposes of the Income Tax Act?
Although the term “domestic partnership” is sometimes used in a tax planning context to describe a partnership constituted under the laws of a Canadian province and the term “foreign partnership” is used to refer to a partnership governed by foreign law, these terms have little relevance for Canadian income tax purposes. The Act does not […]
Limited partner status under the Income Tax Act
The treatment of a particular partner under the Act can vary depending on whether the partner is considered to be a “limited partner” as defined in the Act. Among other things, if a partner is a limited partner, specific at-risk rules apply to restrict the partner’s ability to deduct partnership losses For purposes of the […]
