Structure your Practice Professionally!
As of 2005, regulated professional corporations in Ontario such as doctors, dentists and many other medical professionals are allowed to incorporate. As a result, these types of businesses are eligible for the same types of tax breaks that regular corporations receive The main reason why businesses incorporate is because it allows business owners to split income with their family members (spouse, parents, or adult child), although if this family member is not a member of this profession they are only eligible for non-voting shares. This means that you are unable to name family members as an officer or director of the corporation. Furthermore, families with minor children can arrange a trust. This trust would allow parents to income split with their child but actually would not result in a tax benefit due to the kiddie tax.
Birdi Chartered Professional Accountant offers a number of services for professional corporations who are looking to incorporate. Starting off, our staff can form a professional corporation in compliance with your governing body so that you are not violating any professional code of conduct. Additionally, in Ontario, Canadian-Controlled Private Corporations (CCPC) are eligible for the small business deduction. The small business deduction allows a CCPC to only have to pay a 15% income tax rate on active business income up to $500,000. Our team can ensure that your professional corporation is eligible for this tax benefit and provide your a structure that will save meet your long-term goals.
At Birdi CPA we strongly believe that the customer comes first. Therefore we offer a consultation at no cost to all businesses. Feel free to ask us any questions that you have about the incorporation of your professional corporation as there are many benefits. Just give us a call or contact us through our website to book your free consultation because we want to help your business succeed and save you tax!