What Are The Legal Steps To Starting A New Business In Alberta?
Starting a new business can be overwhelming, but there are easy steps to follow to make sure you are doing everything according to the law. Don’t worry, the experts at Heritage Law are here to help! Read on for more.
STEP #1: Choose A Type Of Business
There are three main types of businesses that each have their own requirements and consequences:
- Sole Proprietorship or Trade Name – Owner and business are legally indistinct; the individual is responsible for all losses, gains, and liabilities.
- Partnership – Two or more legal entities share responsibility for the losses, gains, and liabilities of the business; as well as the actions of each partner.
- Limited Corporation – Shareholders share in the business’s gains, but are usually not at risk due to losses or the actions of other shareholders; more regulations and costs are associated with incorporating your business.
NOTE: Sole proprietorships/trade names and partnerships fall under provincial law, while corporations answer to the federal regulations.
STEP #2: Name Your Business
When naming a sole proprietorship/trade name or corporation, it is prudent to check if your chosen name is already registered somewhere in Canada (official databanks are available to access). Also, corporate names typically include a legal classification to indicate that shareholders are involved.
“Limited” (Ltd.), “Incorporated” (Inc.) or “Corporation” (Corp.) are just some examples of this element. If naming your corporation is not crucial to doing business, an alternative will be provided (i.e.: XXXXXXX Alberta Ltd.) with uniquely generated numbers.
STEP #3: Register Your Business
Once you have fulfilled the steps above, you can finalize the process by acquiring, completing and delivering the correct forms or often simply by visiting a registry.
Do you have questions or concerns about legally starting a new business in Alberta? Contact or visit Heritage Law today!