A partnership is the result of a contract between two or more persons, called “partners or members,” who wish to operate a business for profit. Each partner makes a financial contribution (money or property), a professional contribution (work or expertise), or both.

Where there is only one partner left in the partnership, and no one joins the partnership within 120 days, the partnership is dissolved.

A partnership can be a general partnership, a limited partnership or a joint venture. For more information about the legal forms of enterprises, consult the Registraire des entreprises website.

Income tax 

Certain partnerships must file an information return.

For more information, click Partnerships and Income Tax.

Consumption taxes

As a rule, partnerships are subject to the rules regarding the application of the GST/HST and QST.

For more information on the tax obligations of partnerships, click Consumption Taxes.

Source deductions and contributions

A partnership must make source deductions and pay contributions on any amounts it pays to an employee or beneficiary if any of the basic conditions are met.

For more information about the obligations and responsibilities of partnerships as employers or payers, click Source Deductions and Contributions.