I have just graduated as a professional in a health related field and will be starting my own business. What are the advantages of becoming a professional corporation?
Here are a few advantages to help you make the decision to incorporate or not incorporate.
- Tax Savings – you will pay tax at the lower corporate tax rate rather than the individual tax rate. Paying shareholders in dividends and not salaries may be taxed at a lower rate.
- You will have a Capital Gains exemption on the sale of practice (if selling the shares of the professional corporation).
- You can participate in income splitting between family members (if family members are permitted to be shareholders of the professional corporation – at the present time physicians and dentists are permitted to add family members as shareholders of their professional corporations).
A business lawyer specializing in establishing professional corporations can advise you in all of the advantages of incorporating your health practice. Our legal professionals are well-respected leaders in the legal community. Our skills can help you minimize your risk and maximize your reward and help you build and protect your business.