Many professionals have placed their trust in the accounting, tax and advisory expertise of Taylor Leibow.
Whether you’re a specialist physician, family practitioner, dentist, chiropractor, massage therapist, naturopath or lawyer, you’ll benefit from Taylor Leibow’s proactive advice from wealth preservation to tax minimization.
Regardless of whether you’re a new practitioner or approaching retirement, we take the time to understand your personal and business goals, answer your questions and, ultimately provide you with the best advice for your situation.
Benefits of Professional Corporations
Any professional earning business income, including lawyers, massage therapists, chiropractors and physiotherapists, can benefit from the basic benefits of incorporating a business in Ontario provided they make more than they need to live on.
Physicians and dentists, however, can benefit even further by splitting their income with family members who are shareholders in the corporation.
Taylor Leibow knows the benefits;
Tax Deferral – retaining profit in the corporation
- Each year, you can leave excess income inside the corporation deferring taxes personally until you need the funds at a later date when you are potentially in a lower tax bracket.
Income Splitting – family members become shareholders
- If you have a spouse or children in a lower tax bracket than yourself consider paying them a salary to decrease the overall taxes paid in the family. The salary must be justified, meaning they must be actually working for the corporation.
- Another benefit of incorporating is the ability to pay dividends to different shareholders. Only certain governing bodies allow family members to become shareholders of a professional corporation (physicians, dentists). Dividends can be paid to lower income shareholders to reduce the overall tax burden for the family. The advantage to dividends is that there is no requirement to justify the amount being paid.
- The rules around insurance are complex, however, depending on your circumstances, it can be beneficial to have certain policies held and paid within your corporation. The advantage is having premiums paid out of pre-tax income instead of personal after-tax income if the policies were held personally.
There are many additional advantages to utilizing a Professional Corporation which can positively impact you and your practice.
Our Clients Speak
I am a physician who moved to Hamilton in 1996. In 2009 I became incorporated. Darren Salmond has worked on my file and is now my only accountant. I have received excellent advice and would recommend Darren and Taylor Leibow.
Darren’s Blog – Incorporating Your Medical Practice
If you are thinking of incorporating your medical practice there are certain questions you should be asking yourself. Do I earn more each year than my current spending needs? Do I have immediate family members that are in a lower tax bracket than me? Do I have insurance policies? Do I have any leases or… more
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In order to incorporate your medical practice it is always advisable to obtain advice from a public accountant and lawyer as the process can become complex and unintended tax consequences may arise if proper care isn’t taken. Each of these professionals will be responsible for different aspects of the process but should work together to… more
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