Canada has approximately 1.29 million small businesses, making up about 99.8% of all businesses in the country. Small businesses employed 5.7 million Canadians in 2023, representing 46.8% of the private sector workforce, and small businesses contributed 33.2% to GDP generated by the private sector. Despite their central role in the Canadian economy, small businesses frequently operate without the legal infrastructure that larger organizations take for granted — leaving them exposed to preventable risks. At DOBRMAN, we provide practical, accessible legal support to Canadian small businesses at every stage of their growth.
Getting your business structure right from the start. One of the most consequential decisions a small business owner makes is how to structure their business. The choice between operating as a sole proprietor, a partnership, or a corporation affects liability exposure, tax obligations, the ability to bring on investors, and the long-term transferability of the business. In Alberta, small businesses that incorporate are governed by the Business Corporations Act and benefit from limited liability protection that sole proprietors and partnerships do not enjoy.
Contracts are the foundation of every small business. Every commercial relationship a small business enters — with clients, suppliers, contractors, employees, and partners — is governed by a contract. For small businesses, poorly drafted or absent agreements are one of the most common and costly sources of legal disputes. A well-structured contract clearly defines the expectations of both parties and provides a framework for resolving disagreements if they arise.
Protecting your IP. Many small businesses underestimate the value of the intellectual property they create in the ordinary course of operating. A small business's website content, marketing materials, software, product designs, brand name, logo, and know-how are all forms of legally protectable IP under Canadian law. Without the right agreements and registrations in place, that IP can be copied, claimed by a contractor, or lost in a dispute — often without the small business owner realizing it until it is too late. Building an IP protection strategy early is one of the most cost-effective legal investments a small business can make.
Employment and contractor relationships carry legal obligations. Small businesses that hire employees or engage independent contractors are subject to Canadian employment law — including minimum standards governing wages, hours, termination, and notice obligations. The legal distinction between an employee and an independent contractor is particularly important for small businesses because a misclassification can result in unexpected costs related to employment disputes.
Privacy and online compliance apply to small businesses too. Canadian privacy legislation applies to small businesses that collect personal information from customers, clients, or employees in the course of their commercial activities. Small businesses operating websites, selling products online, or with online marketing programs have legal obligations under Canadian privacy and anti-spam legislation that apply regardless of their size.
Unpaid invoices and debt recovery. Getting paid is one of the most fundamental legal challenges facing Canadian small businesses. When a client or customer fails to pay an invoice, a small business has legal tools available to recover what it is owed — including formal demand, negotiation, and court proceedings in the appropriate Alberta court. Having well-drafted invoices, payment terms, and service agreements in place before a dispute arises significantly strengthens a small business's ability to recover unpaid amounts efficiently.
Buying or selling a small business. The purchase or sale of a small business is one of the most important transactions a small business owner will make. Whether structured as an asset purchase or a share purchase, a business sale often involves extensive due diligence, non-disclosure agreements, acquisition agreements, and oftentimes many rounds of negotiations. Getting the structure right has significant implications for both the buyer and the seller.
Business Corporations Act, RSA 2000, c B-9 — Alberta's provincial corporate statute governing the incorporation and governance of Alberta incorporated businesses, including the rights and obligations of directors, officers, and shareholders in Alberta.
Canada Business Corporations Act, RSC 1985, c C-44 — Canada's federal corporate statute governing the incorporation and governance of federally incorporated businesses, including the rights and obligations of directors, officers, and shareholders across Canada.
Employment Standards Code, RSA 2000, c E-9 — Establishes minimum employment standards in Alberta, including provisions governing wages, hours of work, overtime, vacation, and termination notice.
Trademarks Act, RSC 1985, c T-13 — Governs the registration and protection of trademarks, including brand names and logos used by small businesses in commerce.
Copyright Act, RSC 1985, c C-42 — Governs the protection of original creative works produced by small businesses, including written content, software, designs, and marketing materials.
Personal Information Protection Act (PIPA), SA 2003, c P-6.5 — Alberta's private sector privacy legislation, governing how small businesses collect, use, and disclose personal information in the course of their commercial activities.
Canada's Anti-Spam Legislation (CASL), SC 2010, c 23 — Governs commercial electronic messages sent by small businesses to Canadian recipients, including email marketing and promotional communications.
Disputes arising from poorly drafted contracts. Small businesses frequently enter into commercial agreements on a 'hand-shake basis', or without the benefit of legal review — and discover the consequences when a dispute arises. Ambiguous terms, missing clauses, and unenforceable provisions are common features of small business agreements that were not professionally drafted.
Wrongful dismissal and employment claims. Employment disputes are among the most common legal issues faced by small businesses in Canada. Claims arising from the termination of an employee — including disputes over notice periods, severance, and the application of the Employment Standards Code — can be disruptive and costly for a small business without proper employment agreements in place.
IP ownership disputes. Small businesses frequently encounter disputes about who owns the intellectual property created in the course of business relationships. Without clearly documented agreements, ownership of a small business's brand, work product, confidential information, website, software, or creative materials can become uncertain.
Shareholder and co-founder conflicts. Disputes between the founders or shareholders of a small business are among the most disruptive legal issues a small business can face. A well-drafted shareholder agreement addresses decision-making, profit distribution, exit mechanisms, and dispute resolution before conflicts arise — and is one of the most important legal documents a small business can have.
Non-compliance with privacy and anti-spam obligations. Small businesses that operate websites, collect customer data, or send commercial emails are subject to Canadian privacy and anti-spam legislation. Non-compliance — including the absence of a privacy policy or sending commercial electronic messages without proper consent — can expose a small business to regulatory complaints and enforcement action.
What does a small business lawyer do? A small business lawyer assists entrepreneurs, startups, and growing businesses with the legal aspects of starting, operating, and growing a business — including incorporation, commercial contracts, employment agreements, intellectual property protection, and shareholder arrangements. A small business lawyer helps clients structure their business correctly from the outset, draft and review the agreements that govern their commercial relationships, protect their brand and creative work, and resolve disputes that arise in the course of operating a business. At DOBRMAN, our small business law practice is specifically designed to make quality legal services accessible to small businesses and entrepreneurs in Alberta and across Canada through transparent, fixed-fee pricing, and direct access to the lawyer.
Should I incorporate my small business in Alberta? Incorporation is not the right choice for every small business, but it offers significant advantages including limited liability protection, potential tax advantages, centralized IP ownership, and a more formal structure for bringing on investors or partners. The Business Corporations Act governs the incorporation process in Alberta. Whether incorporation makes sense for a particular small business depends on its circumstances, goals, and risk profile.
What is a shareholder agreement and does my small business need one? A shareholder agreement is a legally binding contract between the shareholders of a corporation that governs their rights and obligations in relation to the business. For small businesses with more than one owner, a shareholder agreement is one of the most important documents the business can have — addressing issues such as decision-making authority, share transfers, buyout mechanisms, and what happens if a co-founder wants to leave.
Do I need written contracts with my contractors and employees? Written agreements are not always legally required in Canada, but they are strongly advisable for any small business engaging employees or contractors. A written employment or contractor agreement clearly documents the terms of the relationship — including compensation, scope of work, confidentiality obligations, and IP ownership — and provides a reliable reference point if a dispute arises.
Does DOBRMAN work with early-stage startups and small businesses? Yes. DOBRMAN's approach — including transparent, fixed-fee pricing and direct access to the lawyer — is specifically designed to make quality legal services accessible to small businesses and startups that do not have the budget for traditional large-firm legal fees.
This information is for education and entertainment purposes only. It is not intended to be legal, business, or other professional advice to be relied on. Do not make or refrain from any decisions on the basis of this information. Please contact us to receive advice from a qualified lawyer. View our Terms of Service for more information.