INCORPORATION FOR PROFESSIONALS

PROFESSIONAL ORDER

In 2001, the Professional Code was amended in order to allow members of certain professional orders to carry on their professional activities within a corporation.

Each professional order establishes its own criteria for incorporation. Our experience with professionals in the health care industry ensures that you will receive quality service that is tailored to your needs.

Our clientele consists primarily of:

  • Doctors

  • Dentists

  • Psychologists

  • Optometrists

  • Chiropractors

  • Denturologists

  • Pharmacists

  • Veterinarians

This list is not exhaustive. Our tax lawyers are always available to advise you with the goal of reducing your tax burden, regardless of your profession.

CORPORATE STRUCTURE

There are three key elements to consider when incorporating a professional practice. In order to maximize annual tax savings, you must ensure that you have a corporate structure that is adapted to your needs, which should include one or a combination of the following tax vehicles:

PROFESSIONAL CORPORATION

Objectives:

  1. Practice your profession;

  2. Receive payments from your clients or the RAMQ;

  3. Pay tax at a rate of 17.5% in the corporation.

FAMILY TRUST

Objectives:

  1. Allows for income splitting (when certain criteria is respected);

  2. Allows for a multiplication of the capital gains exemption.

HOLDING CORPORATION

Objectives:

  1. Investing surplus revenue;

  2. Allows for more efficient retirement planning;

  3. Ensures better protection from your creditors;

  4. Payment of surplus income by way of a tax-free inter-corporate dividend between a professional corporation and the holding.


Many factors must be taken into consideration before deciding on the optimal structure for a professional. For example, if a professional owns a clinic that can be sold to another professional, it may be necessary to include a family trust and a holding corporation into their structure. A professional working as an associate during their early may only require a professional corporation without the need for a family trust. The choice of the ideal corporate structure should be decided case by case.

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info@meditax.ca |   514.653.6334

MEDITAX