Registering a 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 trade name, partnership or corporation is the best form of business, it’s highly recommended you get legal advice.
There are 4 types of business names registered under the Partnership Act:
- trade name (sole proprietorship)
- limited partnership
- limited liability partnership
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.
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.
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.
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.
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