Professional Corporations are a particular type corporation for certain regulated professions. Doctors, Lawyers, Dentists, Accountants, Physiotherapists, Optometrists and other types of professionals are eligible to have professional corporations.
The Federal Government brought in passive income rules that can have adverse tax consequences, but there are advantages, such as tax deferral.
Professional Corporations do not offer liability protection, unlike other corporations, so maintaining all of your assets in such an entity may not provide creditor proofing.
Professional Corporations are incorporated pursuant to the rules of the governing body. Permission has to be obtained from the regulatory body in conjunction with registering at the corporate registry, structuring and Professional Corporation and preparing minute-books.
If you require assistance in setting up your Professional Corporation, please feel free to contact us.
The information contained in this article is not legal advice. No solicitor client relationship is formed through this article. The reader is encouraged to retain counsel for advice in these matters.