When two or more individuals co-own a business, a partnership is formed. In a General Partnership, all partners share liability equally, and each can be held personally responsible for the debts and actions of the others. This unlimited liability underscores the critical need for a comprehensive partnership agreement drafted by legal counsel to define roles, responsibilities, profit sharing, dispute resolution, and exit strategies.
For increased protection in some instances a Limited Partnerships (LPs) can be created in in Alberta, involve a general partner with unlimited liability who manages the business, and limited partners whose liability is limited to their investment. There are certain requirements to a Limited Partnership as to the involvement of the limited partners in the operation of the business. As such, legal advice is required if you are considering such a structure.
Additionally, for certain regulated industries, a Limited Liability Partnerships (LLPs) can be created. An LLP offers protection to partners from the liabilities arising from the negligence or misconduct of other partners. An Alberta corporate lawyer can help you determine if a general partnership, LP or LLP is appropriate, offering crucial insights into liability protection and the appropriate structure for your business.
Building and maintaining a thriving business in Alberta requires proactive legal support. Investing in professional business legal advice in Alberta from the outset is an investment in your venture's stability and growth. An experienced Alberta business lawyer offers the expertise to establish your business correctly, manage risks effectively, and position you for long-term success in Alberta's market. Contact a trusted corporate law firm in Alberta today to build a strong legal foundation for your enterprise.