LAW 321 Lecture Notes - Lecture 9: Canada Business Corporations Act, Limited Liability Partnership, Arthur Wishart
29 Nov 2016
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Factors to consider when choosing a legal structure for doing business: risk and degree of tolerance for personal liability, ease of operation, manner and level of benefit received form the business. Person conducts business in their own name. No legal separation between the owner and business: unlimited liability (risk) Simple and least costly to establish and operate. Unrestricted and unlimited personal liability of the owner. Founded in common law and provincial statutes: partnership act, 1990 (opa) & General partnership two or more people carry on business to earn a profit: no legal registration required, written agreement not required but recommended. If none default opa provisions apply (ss. 6 19 - opa established a mandatory code governing the liability of the partnership to 3rd parties. Partners act as agents and their obligations are binding to the business even if they acted without authority: no legal separation between partners and business.
