The lightest official route to working for yourself: when registration is actually required, where a trade name declaration is filed and what it costs, how your Business Number is issued, and what to do in the first days after you register.
This guide is general information, not legal or tax advice. Fees and thresholds were checked in November 2026 against Alberta.ca, Canada.ca (CRA), the City of Edmonton and WCB-Alberta. Rules change — confirm the current version on the official page before you act. Where an amount could not be verified from an official source, this guide says so instead of printing a number. Official sources are listed at the end.
A sole proprietorship is a business owned and run by one person, with no separate legal identity. Alberta.ca puts it plainly: a business name on its own has no legal existence — it is a name representing the business. In law, the business and its owner are the same person. Business income is reported on the owner's personal tax return, using Form T2125 (Statement of Business or Professional Activities).
This structure suits people starting on their own, people who want the lowest startup cost, people testing a business idea in the market first, and people providing services from home — trades, cleaning, consulting and freelance work, for example. It is the simplest business structure in Canada to set up and run, with none of the corporate formalities such as annual corporate returns.
Because there is no separate legal identity, the owner is personally — and without limit — responsible for the debts and obligations of the business. If the business cannot pay a debt, creditors can pursue the owner's personal assets. For higher-risk work (large contracts, growing by borrowing, a growing number of employees), talk to an accountant and a lawyer about incorporating.
| Topic | Sole proprietorship | Incorporation |
|---|---|---|
| Legal identity | The same person as the owner | A separate legal entity |
| Liability | Personal and unlimited | Generally limited to the corporation |
| Setup | No filing if you use your own name; a declaration if you use a trade name (Section 3) | Incorporation through a registry agent, with a higher government fee and more formalities |
| Taxes | Income reported on your personal return (T2125) | The corporation files its own return (RC account) |
| Admin load | The lightest | Heavier: annual returns, minute book and records |
Most one-person service businesses start as sole proprietorships and incorporate as they grow. This guide covers the first step; the decision to incorporate is a separate evaluation.
The first decision is your business name, and it determines whether any registration is required. The Alberta rule is simple:
Timing: under the Partnership Act, the declaration is to be made within 6 months of the date the name is first used. Practical advice: finish the filing before you start using the name with customers — your bank and the city licence office will ask for the registration document.
| Path | Registration | Cost and what you get |
|---|---|---|
| Your own full legal name | No trade name declaration | $0 — you can start working; licence and CRA steps still apply separately |
| A trade name | Declaration of Trade Name through a registry agent (Section 3) | $10.61 government fee + the agent's service fee; you receive a proof of filing and a federal BN notification |
The steps below follow Alberta.ca. In Alberta the declaration is not filed through the province's own online portal; it is filed through an authorized Corporate Registry service provider (a registry agent), and trade name registration is a Level 1 (basic registration) service at those providers. Some providers offer their own online intake, but the official route is applying through the provider.
What you need: the trade name you will use. Where: you decide it yourself, following the rules in Section 2. Make sure it contains no Ltd./Inc./Corp. and is not misleading.
What you need: your proposed name. Where: an authorized NUANS provider. Cost: the provider's fee — ask the provider, as it is not set by the government. Seeing similar names in advance is cheaper than changing your name later.
What you need: your legal name, your address, the trade name and a description of the business activity. Where: the form is one of the Alberta Corporate Registry forms and is also available at the registry agent. Make sure every detail matches your identification exactly.
Bring: your business name information, the Business Name Report if you got one, valid identification, and payment. Where: an authorized Corporate Registry service provider — choose a Level 1 provider from Alberta.ca's "Find a business registry" list. Your information is entered into the Corporate Registry system and you are given a proof of filing; keep it, because bank and licence applications will ask for it.
Cost: the government fee is $10.61 (Registry Agent Product Catalogue, as of September 1, 2026), plus the registry agent's service fee. The service fee is unregulated and varies from provider to provider — ask for the total before you go. There is no renewal cycle: the registration stays valid until it is cancelled.
Afterwards: when your federal Business Number is issued, it is sent to you by email. If a BN was already assigned to you (personally or for a corporation), no new number is issued — your existing BN is used.
The founder of this site, Munir, also started as a sole proprietorship in Alberta: he completed his registration and received his Business Number, and today he runs a service business in Edmonton. The sequence in this guide is that process, written out plainly. Personal experience never replaces the official rules, though — the official sources at the end of this page are what count at every step.
The Business Number (BN) is the 9-digit number the Canada Revenue Agency (CRA) assigns to your business. Program accounts are attached behind it with a two-letter code and a four-digit reference number — a GST/HST account, for example, appears as 123456789 RT0001. Each business has only one BN.
No. A sole proprietor who works under their own name, has no employees and stays below the GST/HST threshold can operate at first without a BN, reporting income through their Social Insurance Number on their personal return (T2125). A BN becomes necessary when you need to open a CRA program account. If you filed a trade name declaration, your BN is issued during that process and notified by email (Section 3, Step 4). And do not apply for a second BN without checking whether you already have one.
| Code | Account | When you need it |
|---|---|---|
| RT | GST/HST | Mandatory once your taxable sales pass the threshold (below). Voluntary registration is possible below the threshold. |
| RP | Payroll deductions | When you hire your first employee and pay a salary: income tax, CPP and EI deductions run through this account. |
| RM | Import-export | If you will import or export commercial goods. Since October 21, 2024 this account is managed by the CBSA, not the CRA: registration is through the CARM Client Portal, not BRO. Details are in Guide 4. |
| RC | Corporation income tax | Belongs to corporations; it is not opened for a sole proprietorship. |
RT and RP accounts can be opened together with the BN in the same BRO session. The detailed CRA account setup is the subject of Guide 2.
If your taxable supplies exceed $30,000 in a single calendar quarter, or over four consecutive calendar quarters, you stop being a "small supplier" and registration becomes mandatory:
The threshold is measured by calendar quarters, not by the calendar year (see Section 6).
The trade name filing and the BN are only the provincial and federal layers of starting. Before the business actually begins, close these three items as well — this is Guide 1's "first 30 days after registration" list.
The details — categories, home-based rules, renewals — are the subject of Guide 5: "Edmonton Business Licence and Permits".
Account types, required documents and a first financing routine are the subject of Guide 3: "Business Bank Account and Getting Started with Financing".
No Alberta trade name declaration is needed — but that does not mean you are done. An Edmonton business licence, any CRA accounts that apply (for example an RT account if you pass the GST threshold) and sector permits are assessed separately. Filing your income taxes is required in every case.
No. According to Alberta.ca, registration gives no ownership or exclusive right to use the name; it is only evidence that the name is being used by you. The same or similar names may exist for others. Real brand protection comes from registering a trademark, which is a separate process.
It is free. With Business Registration Online, the BN is issued instantly in the same session; recording the number shown on screen is your responsibility, as the CRA does not send it separately. A BN that comes through a trade name filing is notified by email instead.
When your taxable sales exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. If you pass it in one quarter, you start charging from that sale and register within 29 days; if you pass it over four quarters, your status changes at the end of the month following that quarter. Voluntary registration below the threshold is always possible.
Yes. Before or around the first hire, open an RP (payroll) account through BRO; the WCB-Alberta employer registration is also made within 15 days of the first employee starting. Deductions, remittances and record-keeping will be covered in Guides 2 and 7.
1) Track where you stand with the one-page Canada Business Startup Checklist — the trade name, BN and licence items on it link back to this guide.
2) Continue with Guide 2 — Business Number (BN) and CRA Accounts: CRA account setup, the program accounts in detail, and a post-BN checklist. See all the guides.
Last checked: November 2026. Before publication, this guide goes through one final pass against the official sources; when fees or rules change, the "last updated" date on the live page is refreshed.