Frequently Asked Questions

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Incorporating or onboarding with WE FILE IT ensures that you have all the necessary incorporation documents, and if you’re missing any, WE FILE IT will provide them. Even after you’re set up, there’s still more that needs to be done. Each year, you will need to file Annual Returns with the government and prepare annual shareholder and director resolutions. Failing to do so can result in the dissolution of your company.

When you incorporate your business, it transforms into a distinct legal entity with rights similar to those of an individual regarding liability and asset protection. You'll need to choose whether to incorporate federally or provincially, based on where you plan to operate. Next, you'll need to draft the articles of incorporation and identify the corporation's shareholders. Once your business is incorporated, limited liability protection will apply, ensuring that the company's assets are entirely separate from those of the owners and investors. 

 The primary purpose of trade name registration is to provide a method for the public to determine which individuals or corporations are carrying on business under a particular name.  A corporation does not have to register a trade name, unless it uses a name that differs from its legal name.

While nothing in the Partnership Act prohibits a minor from registering a trade name, it should be noted that a contract involving a minor, including a minor operating under a trade name, may not be enforceable.  Minors wishing to register a trade name should be advised to seek legal advice.

An agent for service is an individual located in Alberta who can accept notices and documents in person or by mail on behalf of the corporation. The agent for service does not need to be a lawyer. You can appoint us at WE FILE IT to be your point of contact in Alberta

NUANS Reports are used to determine the availability of a corporate/business name. In order for you to register or incorporate your business, a NUANS Report is required by the Federal & most provincial governments.

The authorized share structure refers to the kinds, classes and series of shares that a company is authorized to issue. There must be at least one class of shares. A class of shares can include one or more series of shares if the special rights and restrictions attached to the class provide for this inclusion.  

At WE FILE IT we have Share Structures readily available to save you from confusion.

 Unlike a sole proprietorship or partnership, one of the key advantages of incorporating your business is that it becomes a separate entity from you as an individual. This means that the owners cannot be held personally liable for the company's debts incurred during operations. However, if you have provided personal guarantees to secure funding, your personal assets may be at risk if you cannot repay those debts. Limited liability allows corporations to take on riskier ventures since shareholders are protected.

Additionally, incorporating your business simplifies the process of transferring ownership compared to a sole proprietorship or partnership. An incorporated entity typically benefits from a lower tax rate and more flexible tax regulations.

 As long as your corporation is active, you will be required to file a yearly return with Corporate Registries Alberta. This is different from your company’s tax returns filed through the Canada Revenue Agency.