NextGen DocsDocuments › Work & business
Profit-Sharing Agreement
NextGen Docs form ND-1226. Search ND-1226 on docs.ngz.ca to make this document again.
Pays a worker, contractor or backer a share of the profit or sales, worded so it does not create a partnership.
Start this document $2.99 or in the monthly planHow it works
What you will fill in
- Business paying the share
- Person receiving the share
- What is this person to the business?
- Regular pay per hour or per year, before the profit share ($)
- Is that per hour or per year?
- Share (%)
- Share of what?
- Which project, store or location?
- How often is it worked out?
- Days after the period ends to pay
- Does the person share losses too?
- How long does it last?
Good to know
- Partnerships Act (Ontario) s. 3: getting a share of profits is evidence of a partnership, but an employee or agent paid by a share of profits is not a partner just because of that. This agreement says clearly there is no partnership.
- An employee paid partly by profit share still gets minimum wage, overtime, vacation and public holiday pay under the Employment Standards Act, 2000. Deduct CPP, EI and income tax on the profit share like any pay.
- If a backer gets a profit share in return for money, that can be a 'security'. Small deals with family, friends or close business associates usually fit an exemption, but check before taking money from strangers.
Help in your language
Every question comes with help like this. For example, “Business paying the share”:
English: Full legal name and address, for example: Malik Trading Inc., 50 Dundas St E, Mississauga ON.
اردو: منافع دینے والا کاروبار۔
ਪੰਜਾਬੀ: ਮੁਨਾਫ਼ਾ ਦੇਣ ਵਾਲਾ ਕਾਰੋਬਾਰ।
हिन्दी: लाभ देने वाला कारोबार।
Français: Nom légal complet et adresse, par exemple : Commerce Malik Inc., Mississauga.
Questions people ask
How much does the Profit-Sharing Agreement cost?
It is free to fill in and preview. To download it, buy just this one for $2.99 or use a plan (Monthly $9.99, or Yearly $79); new accounts get 7 days free with no card needed.
Can I fill in the Profit-Sharing Agreement in Urdu, Punjabi, Hindi or French?
Yes. The finished document is in English, but every question has plain help in English, Urdu, Punjabi, Hindi and French, and you can speak your answers.
Do I need a lawyer?
Many people use this document on their own. If your situation is complicated, or a lot of money or your home is involved, talk to a lawyer or licensed paralegal. In Ontario, the Law Society Referral Service (findlegalhelp.ca) gives a free 30-minute consultation.
Is my information private?
Only you can see your answers. They are saved on your device, and in your own account if you sign in, so you can finish on another device. NextGen Docs is not a law firm and does not give legal advice.