The proprietor is entitled to all profits from the business and is personally liable for all its debts and obligations. The individual's liability is not limited to the assets in the business, but extends to personal assets. A partnership formed in Ontario may, as a rule, carry on business only in Ontario. However, most provinces provide for the registration of extra-provincial partnerships which will entitle such a partnership to carry on business in other provinces as well. In a limited partnership, partners are liable only to the extent of the capital they have contributed.
Limited partners become general partners when they participate in the management of the business.
A joint venture is a business activity carried out by two or more persons. There is no legislation which specifically regulates joint ventures in Ontario, and there is no precise legal definition or status for a joint venture. When a new corporation is formed to carry on the joint venture business, it is sometimes referred to as an incorporated joint venture. A non-resident corporation or individual can also carry on business in Ontario by means of a partnership or joint venture arrangement. Corporations can enter into such an arrangement either directly or through a Canadian subsidiary.