Our successful professional clients (doctors, dentists, lawyers and others) look to us for advice on minimizing income-taxes and maximizing long-term wealth accumulation opportunities. One of the most useful tools available to achieve such goals is the professional-corporation structure. Through the use of this structure, we are able to obtain long-term tax deferrals of more than 25% of annual income. Keeping more of your capital at work for you is one of the keys to long-term wealth accumulation.

For instance, the tax paid on $50,000 of income that is kept within a corporate structure will be more than $10,000. If this amount of income was earned without the benefit of the professional-corporation structure, the taxes payable may be more than $23,000.

By putting the extra $13,000 to work ($23,000 less $10,000) at a rate of return of just 5% per year, our professional clients have the opportunity to generate extra investment income of more than $190,000 over a 20-year period.

To find out more about how such a structure might be used in your particular circumstances, contact Michael Carnegie at 905-645-5576.