It is never too early or too late to benefit from the advantages offered by incorporation.

Before deciding to incorporate, one must take the following factors into consideration:

  1. Annual revenue;

  2. Personal tax rate;

  3. The income of other family members in the household;

  4. Short-term projects (purchase of a home, pregnancy planning etc..)

  5. Short-term plan to purchase or open a clinic

Incorporation and proper tax planning will allow for better tax savings in the short and long term whether you are early in your career or a few years away from retirement (ideally at least 5 years years from retirement).

Incorporation should be considered when your income before taxes (all sources taken into consideration) is greater than your expenses (excluding RRSP, TFSA contributions).

Even though a professional may not be a good candidate for incorporation throughout their career, they should however do so prior to selling a private practice in order to minimize the tax consequences associated with the sale of a medical or dental clinic (see Lifetime Capital Gains Exemption).​


For the most part, and contrary to popular belief, debt is not an obstacle to incorporation. Often, the tax savings realized through incorporation can allow for a quicker reimbursement of debt when properly planned out.

On the other hand, if someone is carrying bad debt (for example, not being able to reimburse the capital on a credit card), it may be preferable to pay such creditors before incorporating.

Debts that do not affect incorporation: Home mortgage, line of credit or low interest loans (student loan, for example).

Debts that impede incorporation: Credit card (only if you are not able to reimburse the entire capital each month), loans at an interest rate that is higher than the market rate (+6%).

Incorporation has many benefits but its timing is crucial. Our tax consultants can help you better assess the optimal time to incorporate your practice.