If you own and operate a medical or dentistry practice in Ontario once of the benefits to being in business is the ability to implement a Professional Corporation structure. Income splitting with a professional corporation can save you a lot in taxes.
If you are not already aware of the benefits please see below:
- Income splitting opportunities with family member's: this reduces your overall family tax bill at the end of the day.
-Flexibility for investments within the professional corporation, so you can earn returns and defer personal taxes as long as the funds are retained within the corporation and not paid out as dividends. Tax savings compounded over years really add up and can increase your overall investment returns in the long run.
- Re-investment in your practice through capital expenditures, hiring additional staff, etc. results in deferral of taxes. This is similar to any re-investment in your business through a corporate structure.
-Flexibility on tax planning strategies
- Limited liability for shareholders and directors.
- The use of trusts for tax planning with business owner's and their family members.
For more information on tax planning for doctors, dentists, and other professionals please contact us and we would be happy to walk you through your options.
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