Partnership:
A partnership can be of two or more people who work as a team in a business.
All partners in a business are responsible for profit and loss of the business according to the ratio decided in partnership agreement.
Partnerships are easy to form just like sole proprietorship.
You should register name of your partnership with the Province where you operate your business.
Profit or losses are reported on form T2125 (Statement of Business Income) separately for each partner.
Additional capital can be raised by partners if needed.
Partnerships have unlimited liabilities.
There a more regulations for partnerships than sole proprietorships.
It is always good to have a partnership agreement signed by all partners. This can save you from many unforseen circumstance in future.
