Welcome to part 2 of Our Small Business Info Series
This week we continue expanding your knowledge on the types of business you may choose to operate.
๐๐๐ซ๐ญ๐ง๐๐ซ๐ฌ๐ก๐ข๐ฉ โ a business that you start with someone else. Could be a friend, a spouse or life partner, or someone you just met, and you have a great business idea together. Could be 2 or more partners, doesnโt matter. A partnership does not have to be a 50/50 split. You can decide the percentages based on money contributions, work, property or skills brought to the partnership. It can be formed with a contract or a verbal agreement, but you should set the terms for entering and leaving the partnership, division of income and other stuff. Itโs kind of like a marriage, things always start out rosy and hopefully they stay that way. However, I want you to go in with your eyes wide open and plan for the worst-case scenario โ have all of the terms written out so if things go south everyone is protected.
The partnership does not have to file a separate income tax return. Instead each partner includes their share of income or loss on their personal tax return. Each partner needs to file a T1 tax return and a form T2125 Statement of Business or Professional Activities.
Jodi