British Columbia is proposing amendments to the Partnership Act to facilitate the creation of limited liability partnerships.

B.C. Finance Minister Gary Collins said the move is part of the province’s efforts to modernize the legislation and bring B.C. in line with business practices in other parts of North America, making the province an even more attractive place to do business.

“Unlike other provinces, where only professionals such as lawyers and accountants may register as LLPs, there will be no restrictions on what types of businesses are able to register an LLP under the new Partnership Act,” said Collins. “This is in line with U.S. and international practices and will place B.C. firmly at the forefront in Canada.”

“These amendments will contribute to making B.C. a more attractive place for investors to establish new partnerships that they might not have otherwise, which in turn will stimulate new investments and help create jobs across the province,” Collins said in a statement.

Currently, active partners in a partnership in B.C. are personally responsible for the liabilities of all the partners and the partnership itself. An LLP is a partnership in which each partner is responsible only for his or her own liabilities. It makes partners more fully accountable to their clients or customers, and ensures all partners can engage in their business without the concern of having their personal assets at risk, unless there is negligence or wrongdoing.

The new act will impose a number of requirements to protect those who deal with partnerships. To obtain and maintain the LLP status the partnership must register at the Corporate Registry, notify clients of their change in status, include the letters “LLP” in their business name, make an up-to-date list of partners available to the public at all times and remain in compliance with all relevant laws and requirements. In addition, professionals will only be permitted to register as LLPs if their governing act allows them to and will be required to remain in compliance with their governing act, as well as the Partnership Act.