Westworld Alberta
Issue link: http://westworldmagazine.ama.ab.ca/i/40418
toolkit Now You're in Business Starting a small enterprise in Alberta by Lindsey Norris W HO HASN'T THOUGHT IT AT least once? At the end of a frustrating work day, a vaca- tion cut short or a long com- mute, it's hard not to contemplate the advantages of being one's own boss. If you've gone past pondering to the planning phase, and decided to leave the workaday life behind in favour of starting a small busi- ness, there are a few things to consider before you get your company cards printed. Pick a Name What's in a name? No offence to Shake- speare, but when it comes to a small busi- ness, more than you might think. Your new company should have a name that is recognizable, and unique without being obscure. You may also need to register the company's name (and possibly the structure) before you can receive a loan from a bank or fi nalize lease agreements. Danielle Unger, a learning resource specialist with AMA Regis- tries, says there is a formula to choos- ing a name: "You need a descriptive element, a distinctive element and a legal element," she says. These elements describe what the business does, set it apart from other businesses and identify the legal structure (that's the "Inc." or "Ltd." that follows the company name – more on that later). To make sure your chosen name isn't already in use, perform a NUANS, or Newly Upgraded Automated Name Search, to fi nd out which names are available and to make sure you won't infringe on any- one else's trademark. Some business own- ers have found themselves on the wrong side of a lawsuit when their name was too close to a major brand – so if you were thinking of McCoffee or Sambucks for your new coffee shop, it's time to go back to the drawing board. Choose the Right Format You may be starting a small business, but iStock there is practically no end to the very large decisions you will have to make in the plan- ning stages. One of the biggest is whether you want to run a sole proprietorship, a partnership or an incorporated company. A sole proprietorship is the simplest model if you plan to operate your small business solo. The main drawback is liability – a sole proprietor is personally liable for debts and obligations related to the business. So if the business fails, it could cost you. A partnership is another way to go, if you plan to operate the At the end of a long work day, it's hard not to contemplate the advantages of being one's own boss. business with a partner or partners. Under this format, partners take on a pre- determined portion of liability, as set out in a partnership agreement. Incorporating involves more time and resources, but it creates a separate legal entity. This means that in most cases, share- holders aren't personally liable for the debts, obligations or acts of the corporation. A corporation's name must include the term "Limited," "Ltd.," "Incorporated," "Inc.," "Corporation" or "Corp." to describe the specifi c legal structure (for more infor- mation on this, refer to the Business Corpo- ration Act: qp.alberta.ca). "You can also register a company as a WESTWORLD >> SEPTEMBER 2011 51