Limited Partnership
What is a Limited - Partnership?
A Limited Partnership (LP) is a business structure where there are at least two partners: one general partner who manages the business and has unlimited liability, and one or more limited partners who contribute capital and share profits but have limited liability.
Key Features
- Limited Liability: Limited partners have liability protection, which protects personal assets from business debts.
- Pass-through Taxation: LPs are not subject to double taxation at the entity level because they are taxed as pass-through entities.
- Management Structure: General partners handle day-to-day activities, while limited partners have a more passive role.
- Investment Opportunities: LPs attract passive investors looking for chances to make investments without direct management participation.
Who can be a general partner in a Limited Partnership?
An individual or another type of entity (such as a corporation or LLC) that takes on management duties and bears unlimited liability for the debts and liabilities of the partnership can function as a general partner.
What are the benefits of forming a Limited Partnership?
Tax advantages, flexibility in profit-sharing arrangements, shared ownership and management responsibilities, and limited liability protection for limited partners are some of the key benefits of LP.
Can anyone file for a Limited Partnership?
Generally, the paperwork required to form a limited partnership can be filed by any partner or designated representative.
Can a Limited Partnership be converted into another business structure?
Yes, in many cases, a Limited Partnership can be converted into a different business structure, such as a Limited Liability Company (LLC) or a Corporation, depending on legal and tax considerations.
Filing Process and Stages
- Preparation: Our first step involves collecting all necessary information about the partners involved, the nature of the business activities, and the contributions each partner is willing to make.
- Drafting: With the collected information, we proceed to create a detailed Limited Partnership Agreement. This document is customized to reflect the specific roles, responsibilities, profit-sharing arrangements, and liability protections agreed upon by the partners.
- Filing: Once the Limited Partnership Agreement is finalized, our team takes charge of submitting all required forms and documents to the relevant authority.
- Approval: During the approval phase, we closely monitor the progress and maintain communication with the authority to ensure a smooth and seamless review process.
- Issuance: Upon receiving approval, the authority issues the Certificate of Limited Partnership, officially recognizing the formation of your partnership. We quickly secure this certificate for you, giving you the paperwork you need to start doing business in the newly established partnership structure.
Requirements and Documents
- Who Can File: Generally, any partner or authorized representative can file the necessary documents.
- Documents to Sign: The Limited Partnership Agreement, partnership formation documents, and any required application forms.
Customer Documents
Once the Limited Partnership is formed and registered, customers typically receive:
- Certificate of Limited Partnership
- Copy of the Limited Partnership Agreement
Why Is OBR the best choice?
- With years of experience, we excel at forming partnerships and adhering to the law. For customer testimonials, check our outstanding Google reviews.
- We customize solutions to address your unique partnership requirements.
- We ensure timely and precise filings without delays.
- Our dedicated customer service guides you through filings and beyond.
- OBR is an authorized Industry Canada agent.
- We are supported by a law firm.
