Incorporation For Doctors - Professional Medical Corporation
A LEGAL BUSINESS IS A HEALTHY BUSINESS
As a doctor, it’s important to keep your business healthy and profitable. When it’s time to take your career to the next level, incorporating can help you gain access to a wealth of benefits to ensure the longevity of your practice.
The Benefits of Incorporation For Doctors
As high earners, doctors typically have a heavy personal tax burden. Incorporating your practice can help you to defer and reduce personal income taxes, making it easier to reach your long-term financial goals like paying off medical school debt and purchasing a home. Incorporating your medical practice also gives you better access to financing and credit options.
Is Incorporation Right for You?
When deciding if incorporation is right for you, it is important to know the fees and administrative work that is required.
Self-managing your corporation can be complicated. You will have more administrative work to handle, and your training is medical, not legal. You will also need to file an income tax return on top of your personal tax return. We recommend that you work with an accounting team that specializes in Medical Corporation returns.
Parr Business Law can manage your yearly corporate filings, liaise with the College of Physicians and Surgeons, and remove the administrative headaches that accompany setting up and maintaining a corporation.
7 Steps to Incorporate as a Doctor
1
Research and Consultation:
Understand the advantages and responsibilities of incorporating as a physician.
Determine if this route aligns with your professional goals. If you’re uncertain, seek guidance from trusted experts and professionals.
2
Choose a Name:
Decide on a unique name for your corporation.
Validate its availability and work with a lawyer to get approval from the College of Physicians and Surgeons of British Columbia (CPSBC).
3
Secure CPSBC Consent and Settle Fees:
Once your chosen name is approved by the CPSBC, ensure you pay for any related fees payable to the CPSBC.
4
Engage Legal Assistance:
Engage a lawyer with expertise in medical incorporations in BC. A lawyer can assist with drafting the necessary documents and provide guidance on legal nuances.
5
Prepare Incorporation Documents:
Alongside your lawyer, draft the necessary documents such as the incorporation agreement, application, and articles in compliance with BC regulations and CPSBC requirements.
6
Submit to the BC Registrar:
Present the prepared incorporation documents to the BC Registrar of Companies.
7
Get Approval:
As long as all of your fees are paid and your application receives approval, you will receive your incorporation permit in around 3 weeks.
Aspects to Consider Following Incorporation Approval
After the incorporation process is complete, there might be several aspects you want to address regarding your corporation. One of the first steps often involves setting up a corporate bank account. If this applies to you, you will also want to allocate shares and make sure to organize these critical documents for your corporation's records. Your lawyer can assist with all of these steps. Additionally you’ll receive a CRA Business Number upon incorporating your Company to open up a MyCRA Business Account.
To stay in good standing, compliance with the College of Physicians and Surgeons of British Columbia (CPSBC) is crucial. This includes regular reporting and meeting any other post-incorporation responsibilities. Physicians must adhere to ongoing professional development mandates and ensure timely renewals of both their practice license and corporation status.
If you would like assistance with any incorporation-related documents following incorporation, we are able to provide guidance.
FAQs
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Without incorporation, doctors pay considerably more in taxes than necessary. You may also find that your options for financing and credit are limited.
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Doctors operating as a sole practitioner or in partnership with other doctors with established practices will need to consult with their accountant or tax advisor to transfer their personal business assets into the new corporation. A Section 85 rollover (tax-deferred transfer of property) may be required following incorporation, as well as transferring any leases, contracts, and other legal obligations to the corporation. We’ll assist you with choosing a name for your corporation that complies with regulatory guidelines and preparing an application for a medical corporation permit from the College of Physicians and Surgeons of British Columbia. After these steps are completed, we will finalize the incorporation.
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The College of Physicians and Surgeons of British Columbia requires up to 3 weeks to approve medical corporation permits. We will endeavour to expedite the processing of your application. Following this, the incorporation process can be completed in as little as 48 business hours.
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Yes, all doctors with a valid medical license should be able to incorporate in BC.
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Unlike many professional service corporations seeking incorporation, it is mandatory to have a lawyer sign a certificate for CPSBC in order to incorporate. Your lawyer will help you submit applications and other paperwork to ultimately obtain your permit to incorporate.
Need Advice on Incorporating Your Medical Practice?
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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 so you can protect your personal assets and build wealth faster. Schedule a free consultation call with us today to learn more.