Starting a business in Edmonton, Alberta involves several steps and costs, along with an understanding of the taxes and fees you’ll need to pay. Here’s a breakdown of what to expect:
1. Business Registration Costs
- Name Search and Reservation (Optional but recommended): $50.00 (NUANS Report)
- Provincial Registration (Trade Name/Partnership): $60.00
- Incorporation (Federal): $200.00 online through the Government of Canada or $300.00 by other means
- Incorporation (Provincial): $275.00 online through the Alberta Government
2. Annual Returns and Fees
- Annual Return (Corporate): Varies; typically $50 to $100, depending on the service provider if not filing directly
- Annual Return (Provincial Business Registration): Varies; approximately $50 to $75, depending on service provider
3. Taxes
- Federal Corporate Tax: The general corporate tax rate in Canada is 15%, but small businesses (Canadian-controlled private corporations) may qualify for a lower rate of 9% on the first $500,000 of active business income.
- Provincial Corporate Tax: Alberta has a corporate tax rate of 8%.
- Goods and Services Tax (GST): If your business revenues exceed $30,000 annually, you must register for GST. The GST rate is 5%.
4. Other Potential Costs
- Business License: Depending on your business type, you may need a municipal business license, which can range from $100 to several hundred dollars annually.
- Workers’ Compensation Board (WCB) Premiums: If you have employees, you will need to register with the WCB and pay premiums based on your industry and payroll.
- Insurance: Business insurance costs vary widely based on the type and size of your business, but it’s a necessary expense to protect your assets and operations.
5. Additional Considerations
- Bank Fees: Opening a business bank account often comes with monthly fees, typically ranging from $10 to $50.
- Professional Fees: Legal, accounting, and consulting fees can vary widely but are essential for ensuring compliance and efficient operation.
- Permits and Zoning: Depending on your business, additional permits and zoning applications might be required, with costs varying by industry and location.
Steps to Register a Business in Edmonton, Alberta
- Choose a Business Structure: Decide whether you’ll operate as a sole proprietorship, partnership, or corporation.
- Name Your Business: Conduct a name search and reserve your business name if necessary.
- Register the Business: Register your business with the Alberta government.
- Obtain Necessary Licenses and Permits: Depending on your business type, acquire the required municipal and provincial licenses.
- Register for GST: If applicable, register for a GST number.
- Set Up Payroll: If you have employees, register for payroll with the Canada Revenue Agency (CRA).
Summary
Starting a business in Edmonton, Alberta involves initial registration costs of approximately $60 to $275, depending on your business structure and registration type. You’ll also need to account for ongoing annual returns, taxes (federal and provincial corporate tax, and possibly GST), and other operational fees. Proper planning and consultation with a legal or accounting professional can ensure compliance and help optimize your business setup.