There are a ton of benefits to incorporate as a business profession but unfortunately only a few professions qualify for it. Typically only professions that are governed by a professional governing association can be lawfully incorporated.
There are some limitations and restrictions when it comes to professional corporations and your accountant can help guide you through them. The benefits greatly outweigh the limits though. A primary reason to incorporate has to do with taxes. Professional corporations receive lower tax rates and income tax deferrals. Personal taxes are also positively impacted when you incorporate.
Unfortunately only a few professions are eligible to incorporate under Canadian law. The following professions are allowed to:
- Dental hygienists
- Dental surgeons
- Dental technologists
- Massage therapists
- Medical laboratory technologists
- Medical radiation technologists
- Occupation therapists
- Physicians and surgeons
- Respiratory therapists
- Social workers and social service workers
- Speech language pathologists
If you’re a licensed profession in any of the eligible fields talk to your accountant about incorporating today. The tax benefits of incorporating your profession are bountiful and it won’t be a decision you’d regret.