Incorporation for Podiatrists - Professional Medical Corporation
A LEGAL BUSINESS IS A HEALTHY BUSINESS
As a Podiatrist, you know that strong footing is an important aspect of everyday life, and business is no different. When it’s time to take your career to the next level by establishing a medical corporation, Parr Business Law can you on track to unlock a wealth of benefits and ensure the longevity of your practice.
The Benefits of Incorporation for Podiatrists
Podiatrists typically find themselves in a high marginal tax bracket, marking it harder to reach long term financial goals such as paying off medical debt or purchasing a home. The highest marginal tax bracket for individuals living in BC is over 50%, and as a self employed Podiatrist, you may find yourself in that bracket during your career. Incorporating your medical practice allows you to take advantage of corporate tax rates. The combined federal and provincial corporate tax rate is 27%, with many businesses taking advantage of the lower rate (provincial) and small business deduction (federal) making the total tax rate just 11%.
More tax strategies exist for corporations, including the lifetime capital gains exemption, use of a holding company, and estate freezes. Incorporating your medical practice can also limit many business liabilities to your corporation, protecting your personal assets and giving you more peace of mind.
Post Incorporation Considerations
Setting up a corporate bank account can simplify bookkeeping, tax filing process and make it easier to organize finances.
The CRA will send you a Business Number which you’ll use to open up a MyCRA Business Account. Your lawyer can assist you with all of the post incorporation actions.
Additionally, you must ensure that you are renewing your registration with the College prior to each year’s deadline, and staying compliant with Bylaws.
FAQs
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Unincorporated Podiatrists pay considerably more taxes than necessary. They may also find that their options for business financing and credit are limited.
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Research and consultation are the first steps you should take. Understand the advantages and responsibilities that come with incorporating a medical practice. Once you’ve determined if this route aligns with your professional and personal goals, you’ll need to apply for a medical corporation permit with the CPSBC. The processing time for your application usually takes 2-3 weeks. Once that’s out of the way, the incorporation process can be complete in as little as 48 hours.
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Yes, all Podiatrists who have been admitted and registered by the College of Physicians and Surgeons of BC should be able to incorporate.
Want to incorporate your medical practice?
When it’s time to incorporate your Canadian medical practice, Parr Business Law can help you navigate the incorporation process with confidence and clarity. Our lawyers have the specialized knowledge to provide you with reliable and candid legal advice to help you incorporate with confidence. Schedule a consultation call with us today to learn more.