Choosing a business structure is one of the first and most important decisions you’ll make as a business owner. There are multiple steps to getting your business set up legally.
Register your business
You’ll need to register your business to operate in Alberta. There are 3 common registrations to choose from for a for-profit business: sole proprietor, partnership, and incorporation.
3 main types of business structures:
Sole Proprietor
If you structure your business as a sole proprietorship, you become the sole owner. A sole proprietorship is the simplest business structure, however, it also means that you will be personally responsible for any debts or obligations incurred by the business.
Partnership
A partnership is when two or more individuals or corporations do business together in partnership. A partnership can be a very flexible business structure—you can expand or limit liability and decision-making authority to suit your business’ needs.
Incorporation
Corporations have similar rights and responsibilities as the other structures, but offer you limited liability as a business owner. It is however the most complex business structure with regulation and reporting requirements you must follow during the life of your business.
Registering your business in Alberta.
In Alberta, business registration services are privatized. Registry agents, name search companies, lawyers, and accountants are all able to provide advice and complete the filing.
The Government of Alberta provides business registration information, forms, and additional resources. They also share information about special registrations and non-profit registrations.
No matter what business structure you choose you will automatically be assigned a 9 digit CRA business number when you register your business electronically in Alberta. This 9 digit number allows you to register your business for a variety of CRA “program accounts”. To learn more about when you need to apply for CRA accounts visit the CRA website.
Local registrations.
Your business may also need to obtain a municipal license and other permits or certifications. These registrations are usually dependent on the type of business you are operating within the city or town that you reside. Learn more about business licenses.
Professional standard regulations.
Your industry may be regulated by a special agency and need to meet professional standards. For example, if you wish to operate an engineering business you will need to comply with the standards set by the Association of Professional Engineers and Geoscientists of Alberta. View list of public agencies that set regulations for a wide range of industries in Alberta.
Worker’s Compensation Board registration.
If you are hiring independent contractors or payroll staff, you may need to register your company with the Worker’s Compensation Board.
