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Home/Business Lawyer/Partnership Agreement Lawyer Toronto
Business Lawyer

Partnership agreement
lawyer Toronto.

Toronto partnership agreement lawyer for business owners and entrepreneurs. Agreements drafted to protect your interests, reviewed to prevent costly disputes, and structured to keep the partnership on solid ground.

· Reviewed by Jonathan Kleiman, J.D.

15+
Years at the
Ontario Bar
400+
Business matters
resolved
4.7
224 verified
Google reviews
FREE
30-minute
consultation

Partnership Agreements for Ontario Businesses

Jonathan Kleiman is a partnership agreement lawyer in Toronto who drafts, reviews, and negotiates the agreements that define how business partners work together, share profits, make decisions, and resolve disputes.

Whether you are launching a new partnership, bringing in a new partner, restructuring an existing arrangement, or dealing with a dispute — Jonathan provides clear, practical legal counsel that protects your interests and your investment in the business.

Every engagement begins with a free 30-minute consultation.

Why a Partnership Agreement Matters

Default rules rarely reflect your deal

If you operate a business partnership in Ontario without a written agreement, the Ontario Partnerships Act fills in the gaps with default rules — including equal profit sharing regardless of what each partner actually contributed, and the right of any partner to dissolve the partnership at any time.

Those defaults rarely reflect how business partners actually intend to run the business. A partnership agreement lawyer replaces those defaults with terms that match your specific arrangement.

Disputes are expensive without a written agreement

Partnership disputes are among the most expensive and disruptive business conflicts. Without clear written terms governing profit sharing, decision-making authority, and exit rights, partners end up in court arguing over issues that a properly drafted agreement would have resolved in advance.

The cost of a partnership agreement is a fraction of the cost of litigating a partnership dispute in the Ontario Superior Court.

Protection from day one

A written partnership agreement establishes each partner's rights and obligations from the start — making it clear what happens when the business grows, when partners disagree, and when someone wants out.

Already operating without a partnership agreement? Read more about partnership business agreements in Ontario or contact Jonathan to get one in place before a problem surfaces.

Drafting Partnership Agreements

Drafting partnership agreements is the foundation of preventive legal work for business partnerships. Jonathan drafts agreements from scratch, tailored to the specific structure, goals, and risks of your partnership.

Every clause is written with two objectives:

  • Does it accurately reflect the partners' deal?
  • Will it hold up if challenged in an Ontario court?
01

General partnership agreements

Profit sharing, capital contributions, decision-making authority, management roles, and partner obligations for Ontario general partnerships.

02

Limited partnership agreements

Defining general and limited partner roles, liability protections, investment terms, and distribution waterfalls for limited partnerships registered in Ontario.

03

Joint venture agreements

Governing contributions, intellectual property ownership, profit sharing, and exit terms for project-based or time-limited business collaborations.

04

Shareholder and partnership hybrid agreements

For incorporated businesses where shareholders operate as partners in practice — combining corporate governance with partnership-style profit sharing and management terms.

Reviewing and Updating Existing Agreements

Before you sign a partnership agreement — or when your business has changed since the original agreement was signed — have the agreement reviewed by a Toronto partnership lawyer.

What's covered in a partnership agreement review

  • Capital contributions — clearly defined and proportional to ownership?
  • Profit and loss allocation — fair and reflective of actual involvement?
  • Decision-making authority — who decides what, and how are deadlocks resolved?
  • Exit and buyout provisions — can you leave without destroying the business?
  • Dispute resolution — mediation, arbitration, or court?
  • Non-compete and non-solicitation — enforceable under Ontario law?
  • Death and incapacity — what happens to the departing partner's interest?

When to update a partnership agreement

Partnership agreements should be reviewed and updated whenever there is a material change — adding a new partner, changing capital contributions, expanding into new markets, or restructuring profit sharing.

An outdated agreement creates the same risks as having no agreement at all.

Resolving Partnership Disputes

Even well-drafted partnership agreements can lead to disagreements. When a dispute arises between business partners, Jonathan pursues resolution in the most cost-effective way available — starting with direct negotiation, moving to mediation if needed, and proceeding to litigation when necessary.

Common partnership disputes

  • Disagreements over profit sharing and compensation
  • Breaches of fiduciary duty between partners
  • Unauthorized transactions or self-dealing
  • Disputes over management authority and business direction
  • Forced buyouts and involuntary dissolution

Small Claims Court (under $50,000)

Partnership disputes under $50,000 are handled in the Ontario Small Claims Court.

Ontario Superior Court (over $50,000)

Disputes above the Small Claims threshold proceed to the Ontario Superior Court of Justice. Jonathan represents partners in both courts.

Need a partnership agreement drafted or reviewed?

Free 30-minute consultation. No fee, no obligation.

Protecting Business Owners and Investors

A partnership agreement lawyer in Toronto protects business owners and investors by ensuring the agreement addresses the issues that cause partnerships to fail.

Jonathan drafts agreements that balance each partner's investment, effort, and risk — so the partnership operates on clear terms from day one.

Who needs a partnership agreement

  • Two or more people starting a business together
  • Existing business partners operating without a written agreement
  • Business owners bringing in a new partner or investor
  • Partners restructuring an existing arrangement
  • Family members going into business together
  • Professionals forming a partnership practice

If more than one person has a financial stake in a business, a partnership contract lawyer should be involved to document the arrangement before problems arise.

Key Clauses Every Partnership Agreement Should Include

Toronto business owners and partners come to Jonathan for help with:

  • Capital contributions and ownership percentages
  • Profit and loss sharing ratios
  • Management roles and decision-making authority
  • Partner compensation and draws
  • Admission of new partners
  • Transfer and assignment restrictions
  • Non-compete and non-solicitation clauses
  • Dispute resolution procedures
  • Buyout and right of first refusal provisions
  • Death, disability, and incapacity provisions
  • Partnership dissolution and winding up
  • Restrictive covenants and confidentiality
  • Insurance obligations
  • Accounting and financial reporting requirements

Every clause should be drafted with both the day-to-day operation and the worst-case scenario in mind. A business partnership agreement lawyer anticipates the issues that arise when partners disagree — and writes around them.

Most partnership disputes happen between people who trusted each other completely at the start. A good partnership agreement is not a sign of distrust — it's a sign that both partners take the business seriously.

Partnership Dissolution and Exit Strategies

When a partnership needs to end, the process of dissolution depends on what the partnership agreement provides:

01

Review the agreement

Jonathan reviews the partnership agreement's dissolution provisions, buyout clauses, and any restrictions on partner exits.

02

Valuation

Determining the fair market value of the departing partner's interest, using the valuation method specified in the agreement or accepted accounting principles.

03

Negotiate terms

Jonathan negotiates the buyout price, payment terms, transition responsibilities, and post-exit obligations including non-compete restrictions.

04

Execute and wind up

Once terms are agreed, Jonathan handles the legal documentation — asset distribution, liability settlement, and registration of dissolution where required.

Whether you are selling your interest in the business or winding up the partnership entirely, having a partnership agreement lawyer manage the process protects your financial interests and minimizes conflict.

Why Choose Jonathan Kleiman

15+
Years experience
Business and contract law across Toronto since 2011.
400+
Matters resolved
For business owners, entrepreneurs, and partners.
4.7
Google reviews
From 224 verified Toronto clients.
FREE
First consultation
30 minutes. No fee, no obligation.
Flat-fee
Pricing
On most partnership agreement drafting and review work.
Direct
Access
Jonathan answers his own phone, email, and text.

Jonathan earned his B.A. (with distinction) at McGill University and his J.D. at Queen's University. He has been a member of the Law Society of Ontario since 2011.

Your partnership lawyer should be someone you can call when a question comes up — not someone you have to schedule weeks in advance to reach. Jonathan handles partnership matters for small businesses, startups, and established firms across the Greater Toronto Area.

Speak With a Toronto Partnership Lawyer Today

Whether you need a new partnership agreement drafted, an existing one reviewed, or help resolving a partnership dispute — bring the details and get an experienced read on your situation.

Call 416-554-1639 or book a free consultation.

Related practice areas

FAQ

FAQs.

The questions Toronto business owners and entrepreneurs ask most often about partnership agreements, partnership disputes, and working with a partnership agreement lawyer.

01 Do I need a partnership agreement in Ontario?

Ontario does not require a written partnership agreement to form a partnership — but operating without one is extremely risky. Without a written agreement, the Ontario Partnerships Act applies default rules that may not reflect how you and your partners actually intend to run the business.

A partnership agreement lawyer drafts a custom agreement that covers profit sharing, decision-making, dispute resolution, and exit strategies tailored to your business.

02 How much does a partnership agreement lawyer cost in Toronto?

Most partnership agreement drafting and review matters are handled on a flat-fee basis. Jonathan quotes the fee before work begins so there are no surprises.

Complex agreements involving multiple partners, significant capital contributions, or detailed buyout provisions may be quoted separately.

03 What should be included in a partnership agreement?

A comprehensive partnership agreement should include each partner's capital contributions, profit and loss sharing ratios, roles and responsibilities, decision-making authority, dispute resolution procedures, restrictions on transferring partnership interests, non-compete and non-solicitation clauses, dissolution and exit provisions, and what happens if a partner dies or becomes incapacitated.

A partnership agreement lawyer ensures nothing critical is missed.

04 Can I update an existing partnership agreement?

Yes. Partnership agreements should be reviewed and updated whenever there is a significant change in the business — such as adding a new partner, changing profit-sharing ratios, bringing in outside investors, or expanding operations.

Jonathan reviews existing agreements, identifies gaps or outdated terms, and drafts amendments that reflect the current state of the partnership.

05 What happens if there is a dispute between business partners?

If your partnership agreement includes a dispute resolution clause, the process outlined in that clause governs — typically mediation followed by arbitration or litigation.

If there is no agreement or the agreement is silent on disputes, the Ontario Partnerships Act and common law apply. Jonathan represents partners in disputes involving profit sharing, fiduciary duty breaches, unauthorized transactions, and partnership dissolution.

06 How do I dissolve a partnership in Ontario?

Partnership dissolution in Ontario depends on whether you have a partnership agreement with dissolution provisions. If you do, the agreement governs the process.

If you don't, the Ontario Partnerships Act sets out default rules — including that any partner can dissolve the partnership at any time by giving notice. Jonathan handles the legal process of dissolution, including asset distribution, liability settlement, and winding up the business.

07 What are the risks of not having a partnership agreement?

Without a written partnership agreement, the Ontario Partnerships Act applies default rules — including equal profit sharing regardless of each partner's actual contribution, and the right of any partner to dissolve the partnership at any time.

This often leads to disputes over money, decision-making authority, and exit terms. The cost of drafting a proper partnership agreement is a fraction of the cost of litigating a partnership dispute.

Your partnership agreement decides who wins later.

Get it drafted right the first time, or get your existing agreement reviewed before a dispute surfaces. Free 30-minute consultation with a Toronto partnership agreement lawyer.

Call 416-554-1639 Free Consultation