Question: We’re starting a partnership for > a speculative venture that could be short-lived, resulting in losses. If it appears that it might be successful, is it possible to change the partnership into a corporation for limited liability and tax reasons?
Yes. You can convert a partnership into a corporation via the rollover provision under the tax act.
You should seek advice on the use of the partnership as the act has provisions that may limit your use of losses personally. If liability is an issue, you may want a corporation as the creditors of the partnership can seek your personal assets.
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