Since 2001, professionals can carry out their practice as a corporation, thereby closing the gap on the prior inequity of their fiscal situation as compared to self-employed workers who can operate their business as a company. This solution has significant advantages. It makes it possible for professionals to reduce their tax burden or defer taxes, in addition to providing flexibility in terms of remuneration, thereby freeing up capital gains exemptions that would otherwise not be available to self-employed workers.
Well planned, this tax savings means it is possible to leave more profits in the corporation to speed up debt repayment and, in so doing, increase the liquidity available for investment, to a far greater extent than if it were distributed to shareholders and invested by the latter. Another advantage is the ability to split income with family members.
Deciding whether or not to incorporate remains a complex decision. It is crucial to analyze all the consequences, tax, legal or other, as this decision will have a great impact on the administration, accounting and the professional’s taxation regarding the firm. The many administrative costs related to setting up such a structure and maintaining it must also be weighed. The structure should be determined according to the actual needs and circumstances of each professional.
Our clientele in this sector is comprised of groups of professionals such as physicians and dentists. We are also partners with the Coopérative des vétérinaires du Québec.
The FBBL Approach
Our Firm offers a range of services to help you incorporate. We can give you strategic advice in this process by taking into account, among other things, the fiscal consequences for commodity taxes. Our team can also assist you with your accounting and administrative paperwork.
Our role is to guide you through the process, ease your transition, and ensure that all the winning conditions are present so that you can take advantage of the many tax benefits of this structure.
- Assessment of the practice
- Asset transfer planning
- Legal and fiscal documentation for the asset transfer