When embarking on a business venture in Ontario, one crucial consideration is the level of liability protection offered by your chosen business structure. In the case of Limited Partnerships (LPs), Ontario offers a unique framework that distinguishes between two types of partners: limited partners and general partners. Understanding the nuances of limited liability protection within […]
Tag Archives | Ontario LP Registration
Unparalleled Flexibility: Ontario Limited Partnerships
When it comes to setting up a business, entrepreneurs often seek a structure that offers them the freedom to mold their enterprise according to their unique vision. This is where Ontario Limited Partnerships (LPs) step into the spotlight, offering an unparalleled level of flexibility that makes them an ideal choice for ventures of all sizes […]
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 […]
What are the major advantages and disadvantages of forming a limited partnership in Canada
Canada Limited partnership. A limited partnership is a form of a general partnership, which is one of three ways of organizing a business in Canada: The other two are sole proprietorship and incorporation. Each of these has its own operational, accounting, tax and legal requirements. There are four characteristics that distinguish a limited partnership from […]
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 […]
Tax Treatment for Ontario Limited Partnerships
An Ontario Limited Partnership is considered a disregarded or ‘flow-through’ entity for Canadian tax purposes meaning that all profits/losses pass directly through and is attributed to the partners. Where the Limited Partnership is engaged in trade or business outside of Canada and the partners are non-Canadian residents, there will be no Canadian income tax arising […]
About Limited Partners in an Ontario Limited Partnerships
In an Ontario Limited Partnership, The Ontario Limited Partnership must also have a minimum of one Limited Partner, which may be an individual, corporation, trust or private foundation and need not be a Canadian resident. US Trusts are commonly used to good effect in this role. The Limited Partner details are not publicly disclosed and […]
