Services for Physicians and Other Regulated Professionals
As a professional, your skills and talent are in demand. Our society values those skills highly and that gives the professional many opportunities, ranging from opening her or his own office to finding employment with large organizations.
If you are looking to establish your own practice, purchase a practice or sell your existing practice, the lawyers at Grinhaus Law Firm can walk you through the process and advise you of the best way to ensure that your interests are protected.
If you are presented with an employment opportunity, the lawyers at Grinhaus Law Firm can review and advise you on the various issues which arise, the best way to structure your employment and advise you of any risks of which you may not be aware of before you sign the employment contract. Our experience in reviewing contracts has helped many professionals in various fields make informed decisions so that they can enter their new employment with confidence, and without any surprises down the road.
Incorporating your medical, veterinarian, accounting or legal practice can bring a host of financial advantages to your business. Incorporation, in short, is the transformation of a business into a legally recognized entity. This entity is treated by law just as a person is; it can earn an income, accrue assets and liabilities, and must pay tax. Incorporation is a common practice throughout the business world, and the incorporation of various professional groups is no exception.
A lower tax rate is the most mentioned and straightforward benefit of professional incorporation. Graduated personal income tax rates are much higher than those of corporate tax rates. By incorporating your business you can effectively lower your tax liability. In most provinces, including Ontario, a preferred tax rate is applicable up to the first $500,000 earned by certain corporations. This income can be used to pay for business-related expenses, such as salaries and equipment, or else it must either stay within the company (for use as capital, for example) or be paid to an individual shareholder through a specific means, such as dividends. However, the legal framework through which all of these processes function can be quite complicated, making an experienced business lawyer a great asset to any Ontario professional practice looking to incorporate.
Income splitting is another advantage that exists to those whose businesses have been incorporated. Income splitting is the reduction of one shareholder’s income by distributing capital to other individuals, such as family members. In addition, earnings retained in the corporation can be used for a number of expenses and the tax liability is deferred until it is drawn out. Since income splitting only works with incorporated businesses, our qualified tax and business lawyers will be needed to assess your needs and structure your incorporation.
Incorporation of professional corporations in Ontario offer many advantages to both new and established medical, legal, accounting and other professionals.
The lawyers at Grinhaus Law Firm can help you decide how best to structure your professional corporation and help you get it set up properly from the outset, so your corporation can meet the regulatory requirements of the governing licensing body of your profession and can tailor your corporation to your specific situation in order to maximize the benefits of your professional corporation.
Please Contact Us to find out how we can help you with your professional legal needs.