While most startups in Toronto and beyond choose to incorporate, some innovative companies do create legal partnerships. Partnerships are a legal agreement between two or more parties. There must also be instructions in case of dissolution of the partnership. The future of the partnership business must be explained by explaining the process of admitting new partners. Also, you must mention what will happen if the partner dies or withdraws from the partnership. In the final stage, you need to pick the law which will govern the agreement and get it signed by the relevant authorities. Decisions regarding the distribution of profits, allocation of losses, and the requirement for additional capital contributions as well as all other financial matters will be decided by a unanimous vote of the Partners. Hi Keshaba: Thanks for reading the article and that’s exciting to hear you want to start a new business partnership for a housing project. I would recommend working with a real estate attorney to establish an LLC where you and your partner are both members and create a partnership agreement in the beginning.