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:
- Limited partnerships―some (“general”) partners manage the company and other (“limited”) partners contribute only financially. In this type of partnership, the extent of liability and profit-sharing varies and will have been defined contractually from the start
- General partnerships―each partner shares the management and remains personally and legally liable for the company’s debts
Downloadable limited partnership agreement template
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.
Sample limited partnership agreement template
This sample legal document has been made available by MaRS Discovery District for informational purposes only and does not constitute advertising, a solicitation, or legal advice. Neither the transmission of this sample legal document nor the transmission of any information contained in this website is intended to create, and receipt hereof or thereof does not constitute formation of, a lawyer-client relationship. Internet subscribers and online readers should not rely upon this sample legal document or the information contained in this website for any purpose without seeking legal advice from a qualified lawyer practicing in the reader’s province.
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