Sole Proprietorship VS. Incorporation in Alberta

In the case where a business owner chooses to operation their business under the title of a sole proprietorship, it is a simple and inexpensive process that can be done easily through the Alberta Registry. Some entrepreneurs will choose this path initially but, as business increases in proportion with risk, it becomes clear that there is a legal need for an incorporated status.
As a Sole Proprietor, there is little to separate your personal wealth, assets, and debt from those of your business. In the case of business debt, creditors may consider your personal assets accessible for repayment.

Incorporations in Alberta cost more today,
but save you tomorrow

Incorporations are a more costly process in the initial stages, and do require annual administration by a commercial lawyer, but they come with a secured and legal separation between your business dealings and the legal and financial security of your family. In addition to this, a top Edmonton business lawyer will explain that there are several positive tax implications to running an incorporated business, such as:

  • small business deduction for Canadian-controlled private corporations
  • $500,000 capital gains exemption on the sale of eligible shares
  • estate freezes and reduction in probate tax
  • income splitting

Additional considerations for incorporating

If you choose to create an incorporated business, there are considerations that any leading commercial lawyer in Edmonton will advice on, such as:

  • Unanimous shareholder agreement in the case of 1+ shareholders
  • the issuing of shares
  • jurisdiction of the incorporation
  • appropriate naming of the corporation
  • the appointment of officers and directors
  • the creation of by-laws / written resolutions
  • the creation and management of a minute book

Contact A Top Edmonton Lawyer to assist you

Your business incorporation, whether it is in Alberta or federal, is a relatively quick process of a leading Edmonton corporate lawyer. The top lawyers in Edmonton and Calgary have assisted hundreds of businesses in the province of Alberta.

Kim Melnyk, B.A., LL.B.
Edmonton Family Lawyer
McGlashan & Mackinnon – Edmonton Child Support Lawyers

Kim focuses her practice in family law. She provides accessible, effective and timely legal advice to her clients after the breakdown of their personal relationship. Kim is committed to providing quality legal services and finding creative solutions to meet her clients’ needs.
M. Robert Mackinnon, B. Sc., LL.B.
Edmonton Family Lawyer
McGlashan & Mackinnon – Edmonton Child Support Lawyers

Robert has been and continues mostly to be a general practitioner. He practices in a broad range of the legal areas, including residential and commercial real estate, construction and real Estate Litigation, family law, corporate and commercial, civil litigation and Wills and estates.