Incorporation is the creation of a separate legal entity which maintains the assets and liabilities on behalf of its shareholders. Professional incorporation for doctors and dentists is an important step to help with significant tax savings. There are numerous advantages to professional incorporation:

• Protects shareholders from potential personal liability and debts owed by the corporation.
• Minimizing tax liability with strategic compensation planning
• Maximizing and creating extra cash flow for future capital investments and working capital

Before moving forward with this important decision, doctors and dentists need to consider the benefits and advantages of professional incorporation, the process of completing this, and the ongoing work that needs to be done. This includes completion of various tax returns and related information with the CRA, filing of annual forms, correspondence with lawyers and maintenance of minutes, and other work that needs to be done on an annual basis.