WHAT IS A PROFESSIONAL CORPORATION
Business incorporation lawyer assisting regulated professionals (in Alberta and Ontario) incorporate their business as a professional corporation.
Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com
A professional corporation is a variant of the traditional corporate entity that can be incorporated by select regulated professionals, with the authorization of their regulatory body and that jurisdiction’s legislation.
The range of regulated professionals that can incorporate as a professional corporation varies from province to province, such that it is important to ascertain the availability of incorporating as a professional corporation.
Depending on the province, the range of potential professions can include lawyers, accountants, doctors, dentists, other health professionals, engineers, architects, realtors and other professionals, although not necessarily every such profession in every province.
A professional corporation enables regulated professionals to realize tax advantages attainable by traditional corporations, including (i) the small business deduction, with its preferential corporate tax rates and ability to defer taxes, (ii) remuneration flexibility, allowing for a sufficient salary and appropriate tax planning / RRSP contributions, (iii) the availability of the lifetime capital gains exemption for the owner of a qualifying corporation, (iv) the potential for absolute tax savings from structuring the corporate payment of non-deductible or partly deductible expenses, and (v) potential income splitting, although this is subject to increasingly stringent tax rules, together with restrictions on permissible shareholders.
There is also the strategic availability of using a non-calendar year-end, as well as various advanced tax planning opportunities, such as individual pension plans, retirement compensation arrangements and corporate-owned life insurance solutions.
To realize these corporate tax advantages, the provincial legislatures and regulatory bodies agreed not to shield the regulated professionals from liability arising from their professional malpractice and negligence, although they might have a degree of personal liability protection as to corporate business debts, payables and other financial obligations, although most significant debts and payment obligations contractually demand personal obligations from the shareholders.
It is also necessary that further restrictions and constraints are imposed on a professional corporation, with those restrictions typically needing to be set out in the incorporating documents.
This includes restricting its business to that of the regulated profession and any associated business, and only permitted members of the profession from being voting shareholders, officers and directors, with separate restrictions and constraints as to non-voting shareholders. Professional corporations can be an advantageous structure to carry out one’s professional practice, yet they also impose added complexity and cost that one needs to consider..
When you incorporate a professional corporation with our law firm, you will benefit from the professional services of an experienced corporate lawyer who understands the importance of devising the appropriate corporate structure for your business operations, meeting the requirements of your profession's regulatory body, on a cost-effective basis - with flat rates* for the professional corporation (Alberta and Ontario). So if you are looking to incorporate a new professional corporation or deal with the corporate legalities impacting your company, contact us via email at Chris@NeufeldLegal.com or by telephone at 403-400-4092 [Alberta]; 905-616-8864 [Ontario].
| Alberta Professional Corporation - Incorporation Base Costs. A break-down of our base costs for an Alberta professional corporation, setting out our flat rate for incorporating a professional corporation (with professional regulatory body PC fees extra). Cost outline .... |
| Ontario Professional Corporation - Incorporation Base Costs. A break-down of our base costs for an Ontario professional corporation, setting out our flat rate for incorporating a professional corporation (with professional regulatory body PC fees extra). Cost outline .... |
* Please note that the flat rates associated with a standard incorporation are strictly limited to a basic incorporation (federal, Ontario, Alberta) and does not involve other matters that might be corrollary to the incorporation process or might be atypical for a standard incorporation, including but not limited to related legal or tax advice, engagement with other governmental bodies or professional bodies, licensing, drafting of pertinent business contracts (i.e., shareholders' agreements), negotiations, disputes, financing, coordination with other companies or other legal structuring.
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