Step 1 — Choose Your Business Structure: The most common structures in Alberta are sole proprietorship (simplest, lowest cost, full personal liability), partnership (for two or more owners), and corporation (separate legal entity, limited liability, higher setup cost). Each has different tax, legal, and governance implications. SMAJ can help you select the right structure for your specific situation.
Step 2 — Register in Alberta: Sole proprietors and partnerships operating under a name other than their legal name must register a trade name with the Alberta Corporate Registry (fee: $60 online). Corporations must be incorporated — either under the Alberta Business Corporations Act or federally under the Canada Business Corporations Act — a more complex and costly process, but one that provides significant protections and tax advantages for growing businesses.
Step 3 — Obtain Your Business Number and Register for GST/HST: Once registered, apply to the CRA for a Business Number (BN) — your unique federal identifier for tax accounts. If your business expects to earn more than $30,000 annually, you must register for GST/HST. Below that threshold, voluntary registration is often still advisable for businesses with significant input costs. Step 4 — Set Up Business Banking and Understand Employment Obligations: Open a dedicated business bank account to separate personal and business finances — essential for bookkeeping, tax compliance, and professional credibility. If you plan to hire staff, familiarize yourself with Alberta’s Employment Standards Code, which governs wages, hours, overtime, vacation, and termination requirements. Sources of startup funding include federal and Alberta grants for small businesses, BDC startup loans, Alberta Treasury Branches (ATB) business loans, and SMAJ’s grant identification services — all of which our team can help you navigate.