A partnership is an unincorporated business, much like a proprietorship (see prior blog) but it is owned by more than one person. The partners could be 2 or more individuals or individuals and corporations or 2 or more corporations. There can be any number of partners as long as there are at least 2.
Just like a proprietorship a partnership can call itself any name it wants as long as it doesn’t use a name already reserved by someone else. And, like a proprietorship, the business name would not have Ltd or Inc at the end of its name.
In order for the partnership to open a bank account it needs to register its name at a registry office. Once that is done the partnership can carry on business in its name.
A partnership doesn’t file a tax return. What happens is that each of the partners must report their share of the profits of the partnership on their own tax return.
We will be posting a blog on the advantages and disadvantages of proprietorships, corporations and partnerships but if you would like to find out which way of doing business is best for you please give us a call. We would be glad to sit down with you to discuss your plans and determine which method of organizing your business would be best for you.