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A partnership is an agreement between two or more people who want to carry on business together. You must register your partnership business name through the Ontario Ministry of Government Services under the Business Names Act and get your Master Business License.

Your business name registration is valid for 5 years. To continue using the name it must be renewed before the expiry date.

Each partner is personally liable for the debts and obligation of the partnership. This means each partner is responsible for the actions of the other partners. Partners can legally bind each other without prior approval.

A Partnership Agreement is essential to setting up the arrangements for running the business and sharing the obligations and revenue. The Partnership Agreement also sets out the relationship between partners when there is a disagreement or dissolution of the partnership.

A lawyer should be used to draw up the Partnership Agreement. Partners may need their own lawyer depending on the complexity of the agreement.

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