Physician Incorporation Guide
Is now the right time?
Understanding Professional Corporations
Incorporation offers significant tax deferral opportunities but isn't beneficial for everyone immediately. The decision depends on your income level, spending needs, debt situation, and long-term goals. Understanding tax planning basics helps you time this decision correctly.
Generally, incorporation makes sense when you consistently earn more than you spend and can leave significant funds in the corporation for investment. For practice owners, see our guide on incorporating your medical practice.
Incorporation Considerations
Tax Deferral
Corporate tax rates of ~12% vs personal rates of 50%+ create significant deferral opportunities.
Timing Factors
Wait until debt is paid, spending is stable, and you can retain at least $50K+ annually.
Setup Costs
Initial incorporation costs $2,000-5,000 plus ongoing accounting fees of $3,000-8,000 annually.
Provincial Rules
Each province has specific requirements for physician professional corporations and eligible shareholders.
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