Professionals such as doctors, lawyers and accountants can now incorporate their Ontario practices. In 2003, incorporating an Ontario professional practice can result in a deferral of income tax of up to 28% of the professional income. This potential tax advantage can often outweigh the additional costs associated with owning a corporation. Also, on a subsequent sale of the practice, you may be able to access the "capital gains deduction" and reduce the taxes otherwise payable on sale, if you sell the shares of your incorporated practice rather than selling the assets of your practice directly.

If you have questions or wish to determine whether you can benefit from these ideas, please contact us.