While most startups in Toronto and beyond choose to incorporate, some innovative companies do create legal partnerships. Partnerships are a legal agreement between two or more parties. The contract 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.
Two types of partnership exist in Ontario:
As an innovation hub, MaRS has created a sample template of a general partnership agreement to help streamline business processes for investors, entrepreneurs 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 looking at business growth, the template is yours to use at your own risk. Please see the disclaimer below.
Disclaimer
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The information contained in this website is provided only as general information and may or may not reflect the most current legal developments; accordingly, information on this website is not promised or guaranteed to be correct or complete. MaRS Discovery District expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this website.