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Alberta Partnership Registration in 24 Hours

Partnerships in Alberta - Advantages of Partnerships in Alberta. Main considerations of

registering a partnership in Alberta.

Fast and Easy Alberta Online Trade Name Registration Service for Alberta Partnerships.
Corporate Registry Solutions simplifies to the maximum the task of registering a new business
partnership business name in Alberta, by offering an easy Alberta on-line business name
registration service in 24 hours at www.corporateregistries.ca

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General Partnerships

In a General Partnership, two or more people share ownership of a single business. Like
proprietorships, the law does not distinguish between the business and its owners. A General
Partnership is composed of two or more persons who agree to contribute money, labor, an/or
skill to a business. Each partner shares the profits, losses, and management of the business,
and each partner is personally and equally liable for debts of the partnership.

Formal terms of the partnership are usually contained in a written partnership agreement.This
is a legal document that sets forth how decisions will be made, profits will be shared, disputes
will be resolved, how future partners will be admitted to the partnership, how partners can be
bought out, and what steps will be taken to dissolve the partnership when needed. Yes, it's
hard to think about a breakup when the business is just getting started, but many partnerships
split up at crisis times, and unless there is a defined process, there will be even greater
problems. They also must decide up-front how much time and capital each will contribute, etc.

Tax Considerations

A partnership by itself does not pay income tax on its operating results. A partnership
agreement can allocate the profits or losses in any ratio agreed to between the partners, but if
there is no agreement, the profits must be allocated equally. Business deductions are taken by
the partnership before the income is distributed to the partners and claimed on their personal
tax returns.

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Each partner also has to file either financial statements or one of the following forms:

*Form T2124, Statement of Business Activities

*Form T2032, statement of Professional Activities
*Form T2042, Statement of Farming Activities
*Form T1163, Statement A-NISA Account Information and statement of Farming
*Activities for Individuals, and
*Form T1164, Statement B-NISA Account Information and statement of Farming
*Activities for Additional Farming Operations; or
*Form T2121, Statement of Fishing Activities

Liability

Partners are personally liable for debts of the partnership and the full amount of these debts
can be collected from one or more of the partners rather than the debt being equally shared.
Partners can also be held personally liable for acts committed by one of their partners in the
normal course of business.

Duration

The business organization ends with death, incapacity, withdrawal or bankruptcy of any
partner, unless otherwise agreed to in the partnership agreement.

How to set up

Like a sole proprietorship, a partnership is easy to form. In fact, a simple verbal agreement is
enough to form a partnership. But if money and property are at stake, you should have a
written agreement.

In Canada Partnerships must register their business name, under the Provincial Partnership or
Business names Act with the Corporate Registry Office.

Advantages

*Easy to organize and few initial costs;

*Limited regulation
*Additional sources of investment capital
*Draws financial resources and business abilities of all partners
*Possible tax advantages
*Partners may take business losses as a personal tax deduction;
*Broader Management base
*May register a trademark or service mark to help prevent confusion resulting from
deceptively similar business names

Disadvantages

*Unlimited liability: each partner is personal liable for all the obligations of the business, not
just his or her share;
*Divided authority: each partner has the power to act on behalf of the business. This requires
that partners be chosen with care;
*Hard to find suitable partners
*Possible development of conflict between partners
*Partners can legally bind each other without prior approval

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*Difficult in raising additional capital;

*Lack of continuity

Email: customerservice@corporateregistries.ca - www.corporateregistries.ca– Phone: 1-888-357-8526