Leverage Electronic Signature Licitness for General Partnership Agreement in Canada

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Your complete how-to guide - electronic signature licitness for general partnership agreement in canada

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Electronic Signature Licitness for General Partnership Agreement in Canada

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How to eSign a document: electronic signature licitness for General Partnership Agreement in Canada

hi guys welcome to the simplify llc channel in this video we will talk about choosing between a partnership or an llc if you are new here don't forget to subscribe and press the bell icon to be notified when a new video appears let's dive right in you're starting a business a huge endeavor and you need a little operational knowledge when deciding the best business structure for your business that you're starting with someone else you may wonder if you should form a partnership a limited liability company a limited partnership or a limited liability partnership well we have all the details to make the right decision for your business but first off what is a partnership a partnership is a formal agreement made by two or more business partners to go into business together a general partnership is an operations structure that is unincorporated there's no need to submit any paperwork to the governmental authorities but it's good to have a written agreement in this agreement you'll simply outline everyone's responsibilities you can also choose a joint business venture recognized and regulated by governmental authorities multi-member llc an llc with more than one owner is a multi-member llc or an llc partnership with an llc you get personal liability protection for all members in an llp or limited liability partnership each owner does have personal liability for what they do still they may be protected from liability for any wrongdoings of the other owners or the llp an lp or limited partnership will have at least two owners or partners but one of these owners has a limited personal liability so they are only liable for debts up to how much they have invested in the business there also needs to be a general partner who has management control over the operations but has no liability protection for debts accrued by the company a gp or general partnership is the most straightforward business relationship for two business owners to form you just have to have two or more people starting a business and you don't have to file anything with the state there is no liability protection for any of the company's owners each one has personal liability for the debts of the business and the things that the other owners do you may be wondering what the difference between a gp and an lp is now remember that a gp doesn't offer liability protection for anyone in the business an lp is incorporated and you have to have one general partner and you can have limited partners those limited partners aren't involved in the daily activities of the business they just provide capital or advise the company so they have limited personal liability for the amount they invested in the business all right now what's the difference between an lp and an llp an llp or limited liability partnership makes each owner only liable for the actions they take a formal operating agreement is required listing all members duties and liabilities llps are considered pass-through entities so each partner reports their share of their profits and pays taxes on it lps don't pay self-employment taxes also llps are usually limited to professional firms like law firms accounting firms or medical practices you can use the lp structure for any business so the big one partnership or llc an llc is a fusion structure it's like a partnership but an llc has to do state filings also the operational requirements differ each year you have to file annual or bi-annual reports taxation may be the same but as an llc you can decide to be treated as an s-corp or c corp more about llc s corp and c corp you can find in our separate playlist about this the link is in the description below with an llc you have to file articles of incorporation with the secretary of state including your operating agreement and other documents your filing fees range from just under fifty dollars to five hundred dollars gps don't have to file with the state however are the operational requirements different for partnerships and llc's so liability when you have a gp you can be liable for all wrongdoings and debts of the business as a separate legal entity an llc offers asset protection for members llps and lps can provide liability protection for the actions of other partners the securities regulations so with an llc you can sell interest in the business lps can do the same how are partnerships and llcs taxed all partnerships and llcs have to file federal tax returns each year on form 1065. you have a pass-through tax structure if you have a partnership so all income losses and deductions are reported on your personal income tax returns each partner is taxed like a partnership with an llc unless you choose to be taxed as an s corp or c corp you should know that limited partners sometimes have to pay self-employment taxes if you get regular income from the business let's wrap this up gps are easy to form but they don't offer the liability protection that an llc would lps and llps can provide liability protection to some partners well that's it for today thanks very much for watching if you want to know more about what an llc is its benefits and disadvantages or about sole proprietorships you'll find the link to those videos in the description box below also don't forget to like and subscribe feel free to write in comments if you have any further questions we will see you next time

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