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Professional Corporations 

Specific tax planning and tax optimization for professionals 

“Dynamicnumbers” provides specific tax planning to optimize your taxes in Professional corporations:

for Health care professionals:

◾ Medical Doctors                       ◾ Dentists

◾ Veterinarians                ◾ Pharmacists

◾ Nurses                          ◾ Psychologists

◾ Opticians                      ◾ Physical Therapists

◾ Optometrists                 ◾ Speech Pathologists

And others like:

◾ Lawyers                                    ◾ Engineers

◾ Real Estates                 ◾ Social workers

Many professionals in Canada can incorporate their practice, which allows them the opportunity to earn income through a corporation.

Tax advantages of incorporating:

The main reason for any professional to consider incorporating is often the significant tax advantages.

In all provinces and territories, the first $500,000 of active business income earned by a corporation is subject to a very low rate of tax, approximately 11% depending on the province or territory.

In a regular, family-owned, and operated corporation, it’s common practice to have other family members as shareholders. Where family members such as a spouse or adult children make meaningful contributions of capital or labour or both, this provides income-splitting benefits since dividends can be paid to the family members and taxed at their personal tax rates.

Certain provinces and territories (e.g., Ontario and British Columbia) offer more relaxed share ownership roles by family members of specific professionals.

the corporation can claim up to the lifetime capital gains exemption on the sale of shares.

 

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