While most startups choose to incorporate, some companies do create legal partnerships as a way to structure their business. Partnerships are a legal agreement between two or more parties.
Two types of partnership exist in Ontario:
The partnership agreement will usually define the terms of the partnership and how the profit-sharing will work. A partnership is not a separate legal entity from its owners.
MaRS has created a sample template of a limited partnership agreement to help streamline business for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and to facilitate the negotiation of terms between investors and startups, the template is yours to use at your own risk. Please see the disclaimer below.
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