Glossary
Corporation
A corporation is a separate legal entity created by incorporation that can own property, sign contracts, and sue or be sued in its own name. Its shareholders normally have limited liability, meaning they are not personally on the hook for the corporation's debts beyond what they put in. That separation, along with potential tax deferral and easier transfer of ownership, is why many growing businesses incorporate rather than stay a proprietorship. Our guide to incorporating a business in Alberta walks through the steps.
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