The most important benefits of incorporating a Medical Corporation
If you are a medical professional in British Columbia, there are great benefits to incorporating your practice. What follows is a description of the main benefits of incorporating a Medical practice and how the experienced lawyers at Kerfoot Burroughs LLP can help.
Incorporating a Medical practice offers greater flexibility in terms of compensation structures for the medical professional, superior and varied tax planning benefits and investment options, and increasing your retirement income options.
Depending on your personal and family circumstances, incorporating your medical practice could allow for tax deferral and income splitting opportunities. — both are significant benefits that can affect your finances in the short and long term.
An incorporated medical professional also has more options available to them for purchasing life insurance. Life insurance is typically purchased with after-tax dollars, so having your corporation own the policy and pay the premiums can make the policy either more affordable or you can obtain a bigger policy for the same dollar amount.
Other benefits include opportunities to minimize taxes due on the sale of your practice, an increase in the deductions that are available to a corporation rather than an individual, limiting liability for non-practice related claims or lawsuits (i.e. loans, leases and other non-medical claims).
The rules and restrictions regarding medical corporation are imposed by the College’s that govern each profession. Members of professional organizations who incorporate must consider the specific by-laws of their governing body. Rules regarding Medical incorporations will differ among each profession, however, normally the restrictions will relate to the following non-exhaustive list:
- Specific company name requirements;
- Ownership of voting shares and non-voting shares;
- Restrictions on directors and officers; and
- Reporting initial shareholders and changes.
Kerfoot Burroughs LLP
We at Kerfoot Burroughs LLP are experienced in incorporating and dealing with medical incorporations. We can help guide you to make the key decisions that are specific to incorporating a medical practice in British Columbia. We will work with you to:
- identify your goals and review your practice;
- explore and implement strategies to maximize the value of incorporating your practice;
- make estate planning recommendations, if necessary.
If you are a medical professional who requires assistance with incorporating or filing renewals or returns for a medical corporation, please contact Ian Burroughs.