Professional Corporation
Tax planning tailored for regulated professionals.
Doctors, dentists, pharmacists, lawyers, engineers, and other regulated professionals in Ontario can benefit significantly from incorporating as a Professional Corporation (PC). We specialize in Professional Corporation setup, tax strategy, and ongoing compliance — designed specifically around the Ontario regulatory requirements for each profession.
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What We Offer
Who Is This For?
Why Choose Synergy
Small Business Deduction Access
A Professional Corporation is generally treated as a CCPC, giving it access to the Small Business Deduction — approximately 12.2% combined Ontario rate on the first $500,000 of active income, versus personal rates of 43–53%. At $300,000 in billings, the annual tax savings can exceed $90,000.
Income Splitting
With a properly structured PC, dividends can be paid to a lower-income spouse or adult children who hold shares. Subject to Tax on Split Income (TOSI) rules — which are complex for professionals — this can meaningfully reduce household taxes. We help you structure this correctly from the start.
Retirement Planning Inside the PC
Because professionals often cannot access traditional employee pension plans, the PC itself becomes a retirement vehicle. Profits left inside the corporation grow at low corporate tax rates. An Individual Pension Plan (IPP) inside the PC can also allow larger deductible contributions than an RRSP.
Regulatory Compliance Built In
Each profession in Ontario has specific rules about who can own shares, the name format required, and approval from the regulatory body (CPSO, RCDSO, LSUO, etc.). We ensure your PC structure complies with your specific college's requirements from the moment of incorporation.
Frequently Asked Questions
Can every professional incorporate in Ontario?
Not all professions are permitted to incorporate in Ontario — only those whose governing legislation specifically authorizes it. Physicians, dentists, pharmacists, lawyers, engineers, architects, chiropractors, optometrists, and veterinarians are among those who can incorporate. Each is governed by different legislation, and the specific rules vary. We confirm eligibility for your profession before proceeding with incorporation.
Who can own shares in a Professional Corporation?
In most professions in Ontario, only licensed professionals (those holding the relevant certificate of authorization or licence) can be voting shareholders. Non-professionals — including spouses and adult children — can hold non-voting shares in many structures, enabling income splitting dividends where permitted. The specific rules depend on your governing legislation and regulatory body. We design a share structure that maximizes flexibility while remaining compliant.
How do I pay myself most tax-efficiently from my PC?
The optimal mix of salary and dividends depends on your personal income needs, RRSP contribution room, CPP goals, and the corporation's profits. Salary creates RRSP room and is subject to CPP but is fully deductible to the corporation. Dividends are paid from after-tax corporate profits but benefit from dividend tax credits. Most professionals benefit from a blended approach that is reviewed and adjusted annually. We run the numbers every year to find the optimal combination for your situation.
What is an Individual Pension Plan (IPP) and should I have one?
An Individual Pension Plan (IPP) is a defined benefit pension plan set up inside your corporation, specifically designed for owner-managers and professionals. It allows significantly larger tax-deductible contributions than an RRSP — especially for professionals over age 40 — and the corporation can fund the plan, giving it a business deduction. The IPP assets grow tax-sheltered inside the plan and can supplement retirement income. It involves actuarial calculations and annual filings, which we coordinate. For high-income professionals over 45, an IPP is often a compelling retirement strategy.
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