The short answer
Alberta has no provincial sales tax and no PST clearance to ask for, and GST on an asset purchase can be skipped if you and the seller elect on Form GST44. Before you pay, get a WCB Alberta clearance, which WCB Alberta says the law makes your responsibility. BDC says a purchase takes six months or more.
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What are the steps to buy a business in Alberta?
A purchase usually moves through these steps, in this order. BDC, Canada's bank for entrepreneurs, says to allow at least six months from the day you decide to buy to closing. In Alberta, step six asks for one clearance, from WCB Alberta, since there is no provincial sales tax.
On the supply side, more than one Alberta business in five, 21.7%, plans to sell or hand over ownership within ten years, and almost a quarter of those, 24.3%, aim to do so within two. The figures come from Statistics Canada's Canadian Survey on Business Conditions, third quarter 2026.
- Talk to a lender first. BDC says to meet lenders before you approach a business, so you do not negotiate a deal you cannot finance. BDC does not prequalify buyers. It reviews a request once you have a business and the main terms.
- Find the business. Use your contacts, your accountant, a broker or a listing site, or ask us to go and find the business you described. The seller is always told.
- Sign a letter of intent. BDC says it should name a price range, the seller's promise to provide the records, the terms for confidentiality, and how long you can negotiate before the seller talks to anyone else. It is not a binding offer.
- Read the records. This is due diligence, a legal and a financial review. BDC says it can run six to 12 weeks or longer.
- Agree the price and the structure. You settle the price, and whether you buy shares or assets.
- Get your clearances. A WCB Alberta clearance letter, and a search of the personal property registry for liens against the equipment.
- Sign the purchase agreement and close. Your lawyer papers the deal and your accountant advises on tax. Both are yours to choose. BDC says the agreement covers the scope of the deal, payment terms, indemnities and warranties.
- Take over. Tell the CRA, because you may need a new business number. Set up your city business licence, and give a registry agent any change of directors.
Should I buy the shares or the assets?
It depends on the deal. BDC says buyers may want assets because of the tax benefits, while an owner selling shares may be able to use the lifetime capital gains exemption. In a share purchase you buy the company, and it carries on as it is. In an asset purchase you buy the equipment, stock, name and customers you agree on, and the seller keeps the company.
| Topic | Buying shares | Buying assets |
|---|---|---|
| Tax value of what the company owns | Does not change. | You split the price between each asset, the inventory and goodwill, and claim capital cost allowance, the tax deduction for wear on equipment, on those amounts. |
| GST | Generally none. | Charged unless you and the seller elect on Form GST44. |
| Provincial sales tax | None. Alberta has no sales tax. | None. Alberta has no sales tax. |
| City business licence | Tell the city. Calgary treats buying a corporation's shares as a takeover: it says the existing licence must be closed and a new one created for the new owner. It also asks for the filed notice of directors when directors change. | Under Calgary's rule, the seller closes the old licence and you set up a new one. |
| Company filings | A notice of change of directors within 15 days, if the directors change. | None for you, because you are not buying the company. |
Your accountant tells you which one costs you less.
Do I pay GST when I buy a business?
On shares, generally no. On assets, yes, unless you and the seller jointly elect to have no GST/HST payable on the sale. With no provincial sales tax in Alberta, GST is the only sales tax on the deal. The election has conditions:
- You buy all or substantially all, at least 90 percent, of the property needed to carry on the business, not only individual assets.
- You can continue to operate the business with that property.
- It cannot be used if the seller is registered for GST/HST and you are not.
- You file Form GST44 on or before the day your GST/HST return is due for the first reporting period in which you would otherwise have paid the tax.
GST/HST still applies to the seller's taxable services, to leases and licences of property, and, if you are not registered, to a taxable sale of real property.
Is there a provincial sales tax when I buy a business in Alberta?
No. The Government of Alberta says Alberta has no sales tax. So there is no provincial sales tax to work out on the equipment, the stock or the goodwill, and no PST clearance certificate to ask for. You still deal with GST, above.
Tell us what you want to own, and where. A Senior Deal Advisor goes and finds the business you described, and the seller is always told.
Join the Buyers Market ClubWhat records should I ask the seller for?
BDC lists what a buyer and an accountant should review. For the numbers: year end statements prepared by an accountant for at least the past three to five years, statements for the year to date and the same period last year, tax returns, bank statements, budgets and forecasts, and records of margins, sales by customer, inventory, receivables, payables, staff turnover and all assets. For the legal side: leases, employment contracts, customer and supplier agreements, licences and permits, corporate documents such as the certificate of incorporation, bylaws and shareholder agreements, and any lawsuits, pending or past. BDC also says to see whether the tax returns match the statements, and whether the year to date results match the story you are told.
What should I get before I pay?
Ask for a clearance from WCB Alberta and have the equipment searched for liens, so the seller's debts do not become yours.
WCB Alberta clearance. WCB Alberta says the Workers' Compensation Act, section 132, makes it your responsibility to get a clearance when you buy a business, its stock or equipment. A clearance letter shows whether an account is in good standing and clears a third party from liability for that account's premiums. You can request one online.
A search for liens. Alberta's personal property registry records liens on vehicles, machinery and other personal property. The Government of Alberta says to search the registry before you buy any item that counts as personal property. You submit the search at a registry agent, under the seller's legal business name.
What happens to the staff?
Their service carries over. The Government of Alberta says that when a business changes ownership and the employee keeps working there, the employee retains all previous length of service. If the employee is later terminated, the original hire date with the first business is used. BDC says the biggest risk in an acquisition is typically the transition: when the owner leaves, do the customers leave too? You may need to meet key employees to learn their roles and whether they plan to stay.
Do the licences and permits move to me?
Not on their own. Each issuer has its own rule, so ask each one before you close.
- Your city. Calgary says that when a business changes ownership, the existing licence must be closed and a new one created for the new owner. The person selling closes theirs. When directors of a corporation change, Calgary asks for a registry search or the filed notice of directors.
- Electrical work. The Safety Codes Council says master electricians are the only contractors who can obtain electrical permits in Alberta. If you are buying an electrical business, it needs a master electrician on the team to keep getting permits. Ask who that will be before you close.
- Other licences, contracts and leases: BDC lists licences and permits among the legal items to review, and says to make sure key contracts, such as leases, regulatory agreements and customer contracts, can be assigned to you.
What if the sale includes land, a building or a lease?
A licensed commercial realtor handles that part of the deal, never us. The Real Estate Council of Alberta says anyone who trades in real estate for others, for pay, must hold a real estate licence, unless an exemption applies. Land is transferred by registering a transfer of land at Land Titles. Ask your lawyer and the realtor how a lease moves to you.
What do I file when I buy shares?
The company stays the same, so the changes show up in its filings. An Alberta corporation must give an authorized registry agent any change of directors within 15 days. Directors must be at least 18 years old.
How do I pay for it?
Most deals mix three sources: your own money, a loan, and part of the price paid to the seller over time. BDC's rule of thumb in a 2021 article was a down payment of 20 to 30 percent, and its loan page says the amount depends on the deal. BDC says vendor financing typically amounts to 10 to 15 percent of the price. The federal Canada Small Business Financing Program backs loans for property, equipment, intangible assets and working capital, but its rules do not list the purchase of shares. See our guide on paying for a business.
What should I pay?
The price follows what the business earns, not what it sells. BDC says the most common method is a multiple of EBITDA, and for a small to medium sized business the multiple could range between three and six times, depending on market conditions. Our guide on how many times profit a small business is worth shows the arithmetic.
Questions buyers ask
How long does it take to buy a business in Alberta?
Is there PST when I buy a business in Alberta?
Do I need a WCB Alberta clearance to buy a business?
What happens to the staff when I buy a business in Alberta?
Do I need a master electrician to buy an electrical business?
Do I need a new business licence from my city?
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Join the Buyers Market ClubSources
- Buying a business, Canada Revenue Agency, page dated 5 May 2026, read 21 October 2026.
- About Tax and Revenue Administration, Government of Alberta, read 21 October 2026.
- Line 25400 Capital gains deduction, Canada Revenue Agency, page dated 5 February 2026, read 21 October 2026.
- When is a clearance needed?, WCB Alberta, read 21 October 2026.
- Clearance help, WCB Alberta, read 21 October 2026.
- Personal property liens, Government of Alberta, read 21 October 2026.
- Employment standards: termination and layoff, Government of Alberta, read 21 October 2026.
- Change notices for corporations, cooperatives and organizations, Government of Alberta, read 21 October 2026.
- About Master Electricians, Safety Codes Council, read 21 October 2026.
- Licence Types, Real Estate Council of Alberta, read 21 October 2026.
- Change land title ownership, Government of Alberta, read 21 October 2026.
- Manage your business, City of Calgary, read 21 October 2026.
- What are the steps to buying a business?, BDC, updated 28 July 2025, read 21 October 2026.
- How to conduct due diligence when buying a business, BDC, updated 24 November 2025, read 21 October 2026.
- Business Purchase or Transfer Financing, BDC, read 21 October 2026.
- What is the minimum down payment to buy a business?, BDC, published 11 March 2021, read 21 October 2026.
- Vendor financing (VTB) for mergers and acquisitions, BDC, updated 7 November 2022, read 21 October 2026.
- How to value a business you'd like to acquire, BDC, updated 28 July 2025, read 21 October 2026.
- How to minimize taxes when transferring shares in your corporation, BDC, updated 4 October 2022, read 21 October 2026.
- Canada Small Business Financing Regulations (SOR/99-141), Justice Laws, Government of Canada, current to 30 September 2026, read 21 October 2026.
- How the Buyers Market Club works, Succession Market, buy page, read 21 October 2026.
- Find a registration, Government of Alberta, read 21 October 2026.
- Intentions and timeline for businesses to sell or transfer ownership within the next 10 years, third quarter of 2026, Statistics Canada, table 33-10-1196-01, released 31 August 2026, read 29 October 2026.
Who publishes this
Succession Market publishes this guide from Kelowna, British Columbia. We help owners navigate the sale of their business.
This guide is general information, not tax or legal advice for a particular purchase. Your lawyer papers the deal and your accountant advises on tax. Both are yours to choose.