New Business Formation Options

If you are thinking about starting a business in Alberta, you will need to know what options are available for your company. You have several options including Corporations, which give you a separate legal entity, and partnerships, which allow two or more people to set up a business without the hassles of incorporation.

Tradenames allow you to operate a secondary business name

A trade name is a legal document that allows you to operate a secondary business name in the province of Alberta. It’s important to know that tradenames are not separate legal entities. Rather, they fall under the protections of a corporation.

You can register a trade name as an individual, partnership, or corporation. As long as it’s not too similar to a business name already registered, you can still operate a business under it. However, if another business has the same or similar name, you could run into trouble.

Corporations provide a separate legal entity

Corporations are legal entities that are separate from the owners of the business. A corporation can be sued and the assets of the corporation can be claimed in court. A corporation does not have any personal liability for its actions, but its directors are personally liable for unpaid wages and certain taxes. A corporation should have a distinctive and legally distinct name. For example, Bob’s Car Wash and Detailing Inc. would be a legal and distinctive name for a car wash.

Corporations are legal entities that allow their owners to establish the business as a separate legal entity from themselves. Incorporated companies have corporate personhood, which means that they have the right to enter into contracts and loan money. Additionally, they can sue and file for bankruptcy. Incorporating a business involves filing articles of incorporation with the appropriate governments.

Corporations are managed by a board of directors, which is elected by the shareholders. Directors are required to meet the minimum requirements of a corporation’s statute. For example, in Canada, a corporation must have at least a quarter of its directors who are residents of Canada.

Partnerships allow two or more people to form a business without the complexities of incorporation

Partnerships are a great choice for entrepreneurs who don’t want to have the hassle of incorporating a company. They are easy to set up, don’t have to follow the formal incorporation process, and don’t have the same rules and regulations as corporations. They also tend to be tax-friendly. Partnerships are especially appropriate for professional service firms, including attorneys, accountants, and medical professionals.

The primary benefit of partnerships is that they are relatively inexpensive to set up. In addition, they require minimal government regulation. In general, partners pay personal income taxes on their share of profits, but they are not subject to any special taxes. The drawback of a partnership is that it often causes disagreements and a loss of control, since each partner is personally responsible for the actions and finances of the other partners.

A partnership can be any type of joint venture between two or more people. The partners can be governments, nonprofit organizations, businesses, or private individuals. There are three major types of partnerships, including limited partnerships and general partnerships. A general partnership is a type of partnership that shares the profits and legal liability of the business equally between the partners.

A partnership is the simplest way for two or more people to form a business. It is a good choice for those who want to create a business without the complexities of incorporation. Partnerships are popular for service-related companies and businesses where the owners share ownership.

For those who want to be in control of their business, a sole proprietorship or LLC is the right choice. However, if you have employees, you should switch to an S corporation once the company becomes reasonably profitable. However, if you are still in the initial stages of business, it is best to form an LLC taxed as a partnership.

Costs of incorporation in Alberta

If you want to incorporate in Alberta, you need to be aware of the costs involved. Although the process of incorporation can be done easily on your own, you may want to seek professional assistance. The government registration fee is about $275, and you may also need to hire an authorized registry agent. If you hire a lawyer, you will be required to pay between $750 and $1,500.

Depending on the type of company you want to form, you will need to fill out supplementary documents. You must be a Canadian resident and have your full street address on the documents. You can also choose to incorporate as a one-person corporation if this is your preferred structure. You’ll need to hire a lawyer to help you complete these documents. Once you’re done, you’ll receive your Alberta certificate of incorporation.

The costs of incorporating a business in Alberta differ from the cost of federal registration. Although most provincial incorporation do not require an annual filing fee, there are some costs associated with the process of filing the articles of incorporation. For this reason, it’s important to consult with a corporate lawyer to receive an accurate estimate. Regardless of the province in which you plan to incorporate your company, incorporating will give your business a distinct identity and limit your liability. It will also be taxed separately, which means you will not be held accountable for its debts.

Alberta’s Corporate Tax Act applies to all businesses in the province. The province has one of the lowest taxation levels in the country. It offers lower income tax rates, and exemptions from payroll and general sales taxes. This gives businesses the freedom to make tax returns as efficient as possible. If you’re interested in incorporating your business in Alberta, contact a corporate lawyer for more information.

As mentioned before, incorporating your company involves some costs, including legal fees and an initial investment. It also has tax disadvantages, including more complicated bookkeeping and public disclosure mandates. Additionally, small businesses with revenues over $30k must register for GST, which means paying more taxes.