Trade Name vs. Corporation in Alberta Canada. Pros and cons.

In Alberta, Canada, there are two main types of business structures that you can choose from: Trade Name and Corporation. Here are some pros and cons of each:

Trade Name:


  • Easy and inexpensive to register
  • No need to file a separate tax return for the business
  • Allows for flexibility in operating under a different name than your personal name
  • Can be useful for sole proprietors or small businesses with a limited customer base


  • No legal separation between the business and the owner, meaning the owner is personally liable for all debts and obligations of the business
  • Limited ability to raise capital
  • Difficult to transfer ownership of the business



  • Provides legal separation between the business and the owner, limiting the owner’s personal liability
  • Easier to raise capital through the sale of stocks or shares
  • Can offer tax benefits, including lower corporate tax rates and the ability to split income between the corporation and its shareholders
  • Can exist beyond the life of the owner


  • More expensive and time-consuming to set up and maintain than a trade name
  • More complex tax reporting requirements and the need to file a separate tax return for the corporation
  • More regulatory requirements and governance obligations, such as holding annual meetings and maintaining proper records

Ultimately, the decision between a trade name and a corporation will depend on your specific circumstances and goals for your business. It is recommended to seek professional advice to determine which option is best for you.

If you need assistance setting up your business, please contact Cat Marketing for all your marketing needs.