Unincorporated Business in Alberta
An unincorporated business in Alberta allows you to run your business without forming a separate legal entity. The business is not distinct from its owner(s), meaning you and your business are considered one entity for legal, tax, and financial purposes.
Whether you’re just starting out or looking for flexible business structures, Alberta offers several unincorporated business options for entrepreneurs. Explore the options below to find the best fit for your business needs.
Why Choose an Unincorporated Business in Alberta?
- Simplicity: Unincorporated businesses are simple to set up and maintain with less paperwork than incorporated entities.
- Flexibility: Choose from a variety of structures, including sole proprietorship, general partnership, or limited liability partnership (LLP).
- Tax Benefits: Certain unincorporated business types can offer tax advantages, especially for small businesses and self-employed individuals.
- Direct Control: As the sole owner or partner, you have direct control over the business and its operations without needing board approval.
Types of Unincorporated Business Structures in Alberta
Below are the Main unincorporated business options in Alberta. Each has its unique advantages and requirements depending on your business needs.
1. Trade Name
In Alberta, a trade name is the name under which your business operates, which may be different from your legal business name. Registering a trade name allows you to conduct business under a name that better suits your brand or business vision.
Key Benefits:
- Use a unique, marketable name
- No need to create a separate legal entity
- Simplified registration process
Best For: Independent contractors, freelancers, or small business owners who want a unique business identity.
2. Sole Proprietorship
A sole proprietorship is the simplest business structure, where one individual owns and operates the business. It’s ideal for small businesses or solo entrepreneurs.
Key Benefits:
- Full control over your business
- Simple to set up and maintain
- Direct tax benefits and deductions
Considerations: The owner is personally liable for business debts.
Best For: Freelancers, consultants, and small business owners.
3. General Partnership
In a general partnership, two or more individuals or entities share ownership of a business. Partners equally share responsibility and liability for business debts.
Key Benefits:
- Shared responsibilities and decision-making
- Simple structure with minimal setup requirements
- Flexibility in managing the business
Considerations: Each partner is personally liable for the debts and obligations of the business.
Best For: Businesses owned by two or more individuals who want to share control and profits.
4. Limited Partnership (LP)
A Limited Partnership (LP) consists of both general partners (who manage the business and bear full liability) and limited partners (who have liability only up to their investment and do not participate in daily operations).
Key Benefits:
- Limited liability for limited partners
- Flexibility in management and ownership
- Attract investment from limited partners
Considerations: General partners bear full liability, while limited partners have restricted roles.
Best For: Businesses seeking investment while limiting liability for certain partners.
5. Limited Liability Partnership (LLP)
An LLP combines the benefits of a partnership with limited liability protection for partners. Partners are shielded from liability for actions of other partners, making it a safer option for professional service firms.
Key Benefits:
- Limited liability for each partner
- Allows for flexible management
- Ideal for professional services (lawyers, accountants, etc.)
Best For: Professional service businesses looking to limit personal liability.
6. Register a Business Number (BN)
A Business Number (BN) is essential for tax and GST/HST registration but doesn’t require you to operate under a business or trade name. It’s ideal for individuals or entities that only need a tax ID number for dealings with the Canada Revenue Agency (CRA) and for GST registration.
Key Benefits:
- Tax Identification: Required for all dealings with the CRA, including income tax filing.
- GST/HST Registration: Needed if your business generates more than $30,000 annually.
- No Need for a Business Name: Register without setting up a business name or trade name.
Best For: Individuals or businesses that need a tax ID and GST registration but do not require a business name or trade name.
Register Your Business in Alberta – We Handle the Entire Process for You
Starting your unincorporated business in Alberta is straightforward, and we make it even easier. As Alberta Business Registry Specialists, we take care of everything from start to finish. Here’s how:
- Choose the Right Business Structure: Not sure if a sole proprietorship, partnership, or trade name suits your needs? Our experts will guide you in selecting the best option.
- Fill Out the Registration Form: Simply fill out our easy online form, and we’ll take care of the rest. No need to visit a walk-in registry office or wait in line.
- Submit the Documents: We’ll handle the submission directly to the Alberta Business Registry and ensure everything is in order.
- Receive Your Registration Documents by Email: Once your registration is complete, we’ll send your official documents directly to your inbox – no trips to the office, no waiting.
Skip the Line – Get Your Business Registered Today!
Need Help Deciding?
Not sure which business structure suits your needs? Our experts can help you make the best decision. Whether you want to register a sole proprietorship, a partnership, or a trade name, we’ll guide you every step of the way. Find out more about steps after business registration, like Permits and Licences required for your business here or look at BizPaL an online tool helps you find the permits and licenses you may need from all levels of government (municipal, provincial/territorial and federal).