A business name doesn’t have a legal existence in its own right. It’s simply a name used by one or more persons to represent their business to the public. That means the sole proprietor or partners are personally responsible for the debts and obligations of the business.
Registering an Alberta business name doesn’t grant any right of ownership of the name. It’s simply proof that the name is being used by a particular business.
If you need help deciding if a sole proprietorship, partnership or corporation is the best form of business, it’s highly recommended you get legal advice.
There are 4 types of Alberta business names registered under the Partnership Act:
trade name (sole proprietorship)
limited liability partnership
Alberta Trade name
A trade name is used when:
an individual does business under a name other than their own personal name
a corporation does business under a name other than its legal name
A trade name is also known as a sole proprietorship.
Fast and easy Alberta Sole Proprietorship Online Registration. Company Formations Canada simplifies to the maximum the task of registering a new sole proprietorship business name in Alberta, by offering an easy on-line sole proprietorship registration service.
Sole proprietorships are registered in Alberta, according to the provisions of the Alberta Partnership Act. Registration is completed by Filing a Statement of Registration Sole Proprietorship with the Alberta Registries Office.
A partnership is created when 2 or more individuals, or 2 or more corporations, do business together as partners. All partners share in the profits and the risks or debts of the business.
Alberta Limited Partnership
A limited partnership consists of 1 or more general partners and 1 or more limited partners.
Each type of partner has different rights and responsibilities. For example, a general partner is usually liable for the debts of the business, while a limited partner is usually liable only for the amount they have contributed to the business.
Alberta Limited liability partnership
A limited liability partnership consists of partners in 1 or more eligible professions, such as accounting or law.
This type of partnership is similar to a regular partnership, except there is liability protection. A partner in a limited liability partnership is not generally liable for the negligence, wrongdoing, or misconduct of a partner, employee or agent.
Partners in a limited liability partnership may be individual practitioners or professional corporations.
Limited partnerships or limited liability partnerships based in other provinces must also register in Alberta when they do business here.