Professional Corporations
Since the year 2000, the Ontario government has allowed regulated professionals, including dentists, medical doctors, lawyers, veterinarians, or chiropractors to incorporate their professional practices.
The professional corporation would confer many of the same tax and non-tax advantages enjoyed by other incorporated self-employed individuals; however, the following restrictions are imposed:
- Professional liability will not be limited through their corporation
- Ownership restrictions
- Business activities restrictions
- Specific corporation name restrictions
To name a few of the advantages of using a professional corporation are as follows:
- Income Tax Deferral
- Ability to access the Capital Gains Exemption when disposing shares of the corporation
- Potential income splitting
- Protection against non-professional liability
- Ability to implement various tax planning strategies, such as estate planning, probate tax planning, corporate owned life insurance plan, or remuneration strategies.
This article is intended for general information purposes only and does not constitute professional advice. Income tax law and regulation change frequently and the content on this article may no longer reflect the current state of the law. If you have any specific questions, you should consult a professional services advisor or email us for further advice.