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Canadian Partnership Agreement

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Partnership
Partners
Accounting
Management
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Partner Details

First Partner

Type:

Individual Business entity

Name:

Address:

(e.g. Street, City, Province, Postal Code)

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First Partner

Type:

Individual Business entity

Name:

Address:

(e.g. Street, City, Province, Postal Code)

Remove

Add another Partner

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Partner Contributions

Provide a description of each Partner's capital contributions

Partner #1

Describe all contributions made by this Partner:

What is the total value of this Partner's contributions?

$

Partner #1

Describe all contributions made by this Partner:

What is the total value of this Partner's contributions?

$

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Profit and Loss

How will your profits and losses be distributed?

Equal share In proportion to capital contributions Fixed percent

What is each Partner's share of profit or loss?

Partner #1's profit/loss share:

Partner #1's profit/loss share:

Remember:The total for all Partners should equal 100.00%

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New Partners

Will your Partnership allow new Partners in future?

Yes No

What is required to admit a new Partner?

Majority vote Unanimous vote

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When a Partner Wants to leave

What is the notice period required before a Partner can withdraw?

Three Months Six Months One Year Two Years

Will your Partnership dissolve on withdrawal of any Partner?

Yes No

After a Partner leaves, that Partner cannot compete against your Partnership for:

Three Months Six Months One Year Two Years

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Dissolving the Partnership

What vote is required to dissolve your Partnership?

Majority vote Unanimous vote (recommended)

How will assets be distributed when winding up your Partnership?

Equal share for each Partner In proportion to capital contributions Fixed percent

What percent of the final dissolution distribution will each Partner receive?

Partner #1's dissolution share:

Partner #1's dissolution share:

Remember: The total for all Partners should equal 100.00%

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27%

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Frequently Asked Questions

Who can be a Partner?

Who can be a Partner?

Individual: An individual, who is competent to contract, can become a partner in the partnership firm.

What are capital contributions?

What are capital contributions?

Cash or assets given to an entity in exchange for an equity interest or as part of an ongoing obligation, or capital commitment, to fund the entity. For example, a capital contribution is often made in exchange for additional common stock, partnership interests or limited liability company interests of an entity.

Why are there limits on Partner withdrawal?

Why are there limits on Partner withdrawal?

All Partners are important to your Partnership. The Partnership Agreement should include terms and conditions that protect your Partnership from the unexpected withdrawal of a Partner.

What happens when the Partnership dissolves?

What happens when the Partnership dissolves?

On dissolution of your Partnership, the affairs of the Partnership must be wound up, assets liquidated, debts paid, and the surplus divided equally among your Partners. If there is only one Partner left after a withdrawal, then your Partnership must dissolve.

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