Setting up a Limited Partnership (LP) involves several key steps. Here’s a general guide to forming one in Canada (with a focus on British Columbia, since you’re in Greater Vancouver):

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1. Understand the Structure

A Limited Partnership (LP) has:​

• General Partner(s) – Manage the business and have unlimited liability.

• Limited Partner(s) – Invest capital but have limited liability (only at risk for what they invest).

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2. Choose a Name​

• The name must include “Limited Partnership” or “LP” at the end.

• Check name availability with BC Registries and Online Services.

• Reserve the name online via BC’s Name Request System ($30 fee).

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3. Register the LP

File a Statement of Limited Partnership with the BC government. You can do this:

Online through BC Registries​

• By mail or in person at a BC Service Centre

 

4. Create a Limited Partnership Agreement (Joint Venture Agreement)

This private agreement outlines:

• Profit and loss sharing

• Responsibilities of general and limited partners

• How new partners can join

• Exit strategies

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5. Obtain Business Licenses & Permits​

• If operating a business, register for a Business Number (BN) with the CRA.

• Check local municipal business licenses (e.g., Vancouver Business License).

 

6. Open a Business Bank Account​

• Provide your LP registration documents to the bank.

• Keep general and limited partner finances separate.

 

7. Consider Tax & Regulatory Compliance​

• LPs are not taxed at the entity level (profits pass through to partners).

• General partners report income on personal tax returns.

• Limited partners may receive T5013 (Partnership Income) forms.

• If revenue exceeds $30,000/year, you must register for GST/HST.

 

8. Maintain Records & Compliance​

• Update BC Registries if partners change.

• Keep financial and legal records for at least six years.

• Would you like help finding a lawyer or accountant to set this up?