Limited Liability Partnership
A limited liability partnership is a hybrid form of partnership where all of the partners are permitted to participate in its management and are also protected by limited tort liability. The partnership’s contractual liabilities are still shared among the partners. Limited liability partnerships were created to allow professionals to practice in partnership, but to avoid the partnership from being responsible for one partner’s mistakes or wrongdoings. Section 44.2 of the Ontario Partnerships Act R.S.O. 1990, c. P.5 only permits professionals that meet specific criteria (i.e. carrying appropriate insurance) to form this type of business entity. If you are a professional, it is important to know if a limited liability partnership is an available business organization option to you. If so the appropriate declarations must be filed and it is highly recommended that a partnership agreement is executed.
It is important to understand the intricacies of each type of business organization and which one is the most appropriate for your unique situation. Whether you chose a corporation, sole proprietorship or a partnership, it is imperative that an agreement is executed depicting each person’s involvement and responsibilities within the business and that the appropriate filings are made.
For additional information, questions or comments, feel free to contact Scott Lemke at (647) 980-9156 or email@example.com