What is a Partnership?
A partnership is created when 2 or more individuals, or 2 or more corporations, do business together as partners. All partners share in the profits and the risks or debts of the business.
A business name doesn’t have a legal existence in its own right. It’s simply a name used by one or more persons to represent their business to the public.
That means the sole proprietor or partners are personally responsible for the debts and obligations of the business.
Registering a business name doesn’t grant any right of ownership of the name. It’s simply proof that the name is being used by a particular business.
If you need help deciding if a sole proprietorship, partnership or corporation is the best form of business, it’s highly recommended you get legal advice.
There are 4 types of business names registered under the Partnership Act:
- trade name (sole proprietorship)
- limited partnership
- limited liability partnership