Quick facts
- Cost to set up: trade name $86 + GST; corporation $498 + GST (government fee included), plus $68 for an Alberta NUANS report if you want a name rather than a number.
- Time: same business day for either, for complete orders received before 3:00 pm MT.
- Who can file: anyone, through a licensed Alberta registry agent, with valid ID.
- What you need: a trade name needs the name and your ID; a corporation needs a name or number, at least one director aged 18 or over, a physical Alberta registered office, an individual located in Alberta as agent for service, and a share structure.
Sole proprietorship vs corporation in Alberta: the comparison
| Sole proprietorship | Alberta corporation | |
|---|---|---|
| Legal status | You and the business are the same person | A separate legal entity that owns its assets and signs its own contracts |
| Liability | Business debts and claims are your personal responsibility | The corporation is responsible for its own debts; owners generally risk what they put in, subject to personal guarantees and exceptions |
| Set-up cost | $86 + GST for a trade name (only needed if the name is not your own) | $498 + GST; add $68 for a NUANS report on a named corporation |
| Set-up documents | Trade name registration and your ID | Articles of Incorporation, Notice of Address, Notice of Directors, Notice of Agent for Service, NUANS report (named only), incorporator's ID |
| Yearly obligations | None at the registry; trade names have no periodic renewal | Annual return every year in the anniversary month ($149 + GST with us, government fee included); minute book kept up to date |
| Taxes (mechanics only) | Business income is reported on your personal return | The corporation files its own T2 corporate tax return with CRA; you are paid by salary or dividends |
| CRA accounts | GST/HST once revenues pass the small-supplier threshold; payroll if you hire | Business number, GST/HST and payroll accounts registered with CRA, separately from Corporate Registry |
| WCB-Alberta | Required for most employers once you hire | Same rule |
| Credibility | Fine for most customers; some larger customers and lenders ask whether you are incorporated | A legal name ending in Ltd., Inc. or Corp., a Certificate of Incorporation and a corporate search record |
| Raising money and partners | No shares to sell; a partner means a partnership registration | Shares can be issued to partners and investors under the classes set in the articles |
| Closing down | Cancel the trade name through a registry agent | Voluntary dissolution filing; annual returns are due until it is dissolved |
What a sole proprietorship is in Alberta
A sole proprietorship is the default. The moment you start doing business on your own, you are one. Nothing needs to be filed with Alberta Corporate Registry unless you do business under a name other than your own personal name; then the Partnership Act requires you to register a trade name through a registry agent, with valid ID.
Registering the trade name does not protect it. An Alberta NUANS report, a name search that lists similar corporate names, trade names and trademarks, is recommended but not mandatory, and it reduces the risk of a conflict. Our guide on how to register a trade name in Alberta covers the details.
The trade-off is personal responsibility. Because you and the business are the same person, the business's debts and claims are yours. For a low-risk service business with no staff, many owners accept that and keep things simple.
What a corporation is in Alberta
An Alberta corporation is formed under the Business Corporations Act by filing Articles of Incorporation and three notices through a licensed registry agent, for a $275 government fee. It needs at least one adult director (no Canadian-residency requirement since March 29, 2021), a physical Alberta registered office and an individual located in Alberta as agent for service.
Once incorporated, the corporation must keep a minute book, the record book holding its articles, bylaws, registers and resolutions, and must file an Alberta annual return every year in its anniversary month, confirming directors, addresses and the top five shareholders. Miss it and Corporate Registry sends notices; keep missing it and the corporation is struck (dissolved). The annual return is separate from the T2 corporate tax return filed with CRA. Step by step, the process is in our guide on how to incorporate a business in Alberta.
Should I incorporate in Alberta? The decision checklist
Incorporate if
- Your work carries real liability exposure: contracts, sites, equipment, products or advice where a claim could exceed what the business owns.
- You plan to hire staff or subcontractors soon.
- You expect to leave profits in the business rather than draw everything each year, and your CPA has a plan built around salary and dividends.
- You will bring in a partner or investor and want shares, not a handshake.
- Customers or lenders you want to work with ask for a corporation.
- You are a regulated professional whose college allows or expects a professional corporation.
Stay a sole proprietor if
- The business is small, low-risk and run by you alone.
- You draw out everything you earn and your CPA sees no reason to change that yet.
- You are testing an idea and do not want an annual return, a minute book and a T2 return before you know it works.
- Keeping paperwork to a trade name registration, with no periodic renewal, matters more to you right now than separation.
If two or more of the "incorporate" lines apply, talk to your CPA about timing. If none do, register the trade name and revisit the question in a year.
When people switch from sole proprietor to corporation
Most switches happen for one of three reasons: a first hire, a first large contract that asks for a corporation, or an accountant's advice once profits grow. The switch itself is a sequence of filings.
- Incorporate the corporation. Named, if the NUANS report shows your existing trade name is clear to use as a corporate name, or numbered if you would rather keep the brand as a trade name.
- Register the trade name under the corporation if you keep the brand. A corporation doing business under a name other than its legal name must register that trade name.
- Transfer the business into the corporation. Which assets move, at what value and on what paper is your CPA's call; ask before you sign anything.
- Open new CRA accounts. The corporation gets its own business number and program accounts; they are registered with CRA, not Corporate Registry.
- Update WCB-Alberta, your bank, insurers, customers and suppliers. Contracts and accounts are in the corporation's name from the switch date.
- Cancel the old trade name through a registry agent once nothing runs under it.
What each option costs to set up and run
| Item | Sole proprietorship | Alberta corporation |
|---|---|---|
| Registration | $86 + GST (trade name, only if the name is not your own) | $498 + GST, government fee included |
| Name search | Alberta NUANS report optional, $68 | Alberta NUANS report required for a named corporation, $68; none for a numbered corporation |
| Records | None required at the registry | Minute book, digital $484 (optional, recommended) |
| Yearly registry filing | None; no periodic renewal | Annual return, $149 + GST with us, government fee included |
| Agent for service | Not required | $566 per year only if a provider acts for you |
| Tax return | Personal return; ask your CPA for a fee | T2 corporate tax return; ask your CPA for a fee |
Our prices are total fees before GST (5%), government fee included. Government fees mentioned in this guide are current as of September 2026; confirm against the Alberta Registry agent product catalogue.
Common mistakes
- Incorporating because it sounds more serious. If none of the checklist lines apply, you are paying an annual return and a T2 return for separation you do not use yet.
- Staying a sole proprietor after the first hire or big contract. That is when liability exposure changes; ask your CPA before the contract is signed, not after.
- Assuming the trade name protects the name. It does not. Only a NUANS report reduces the risk of a conflict, and a corporation gets a legal name of its own.
- Deciding based on a tax number someone quoted. Whether a corporation helps depends on your situation. Get it from your CPA, in writing, for your numbers.
- Forgetting the annual return after switching. It is due every year in the anniversary month, starting the year after incorporation, and the corporation can be struck if it is missed repeatedly.
- Leaving the old trade name registered. Cancel it, or re-register it under the corporation, so records and contracts point to the right entity.
Frequently asked questions
Is it worth incorporating a small business in Alberta?
It depends on how much liability the business exposes you to, whether you will leave profits in the business, whether you plan to hire or bring in investors, and what your CPA recommends for your situation. Setting up costs $498 + GST with an annual return every year afterward, against $86 + GST for a trade name with no periodic renewal, so the question is whether the corporation's separation and structure are worth that ongoing cost to you.
Does a sole proprietor need to register anything in Alberta?
Only if you do business under a name other than your own personal name; then you must register a trade name through a registry agent with valid ID, and an Alberta NUANS report is optional. Separately, you may need CRA accounts such as GST/HST once your revenues pass the small-supplier threshold, a WCB-Alberta account if you hire, and a municipal business licence.
Can I incorporate later without losing my business name?
Usually, yes. Registering a trade name does not protect the name, so when you incorporate, the Alberta NUANS report will show your trade name alongside any similar names, and a trained agent can tell you whether Corporate Registry is likely to accept it as the corporate name. Alternatively, incorporate a numbered company and register the same trade name under the corporation, since a corporation doing business under a name other than its legal name must register that name.
Do corporations pay less tax than sole proprietors?
Sometimes, sometimes not; it depends on your income, how much you leave in the business and your personal situation, so ask your CPA. The mechanics are different: a corporation files its own T2 corporate tax return with CRA and pays you by salary or dividends, while a sole proprietor reports business income on their personal return. We set up whichever structure your CPA recommends.
Next step
Staying a sole proprietor? Register your Alberta trade name online for $86 + GST. A CORES-trained agent checks the name before filing, and orders received before 3:00 pm MT are filed the same business day.
Ready to incorporate instead? Incorporate your Alberta corporation for $498 + GST, government fee included. Questions either way? Call (403) XXX-XXXX (Mon–Fri 8:00–6:00 MT).
ACS is a private company. We are not a government office or a registry agent; our CORES-trained agents prepare your filing and submit it through a licensed Alberta registry agent.