Professionals in many Canadian provinces are now allowed to incorporate their practices.

At the time of writing, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, and Prince Edward Island all allow professionals to earn their income through a corporation. Quebec is expected to follow suit shortly.

Who is included in the definition of professional? That will depend on the provincial legislation but generally includes regulated professionals such as physicians, dentists, lawyers, accountants and veterinarians.

So, you might be wondering, who is a good candidate for incorporation, and what are the benefits?

In this AIC Tax Smart bulletin we discuss the pros and cons to professionals incorporating and offer some guidance for using these corporations to their utmost advantage.

To learn more about the tax breaks for professional corporations, talk to your financial advisor and ask for a copy of the AIC Tax-Smart bulletin, Professional corporations offer tax breaks.