Register a Professional Corporation
In 2001 relevant legislation and regulations were passed enabling regulated professionals to incorporate (register as a Professional Corporation).
Following this proclamation, members of the following professions became able to consider Incorporating as a Professional Corporation:
- Chartered Accountants, Certified General Accounts, and Lawyers
- Health, Medical and Dental Professionals under the Regulated Health Professionals Act
- Social and Social Service Workers
Incorporating is done by filing Ontario Articles of Incorporation with the Ministry of Government Services (MGS), Central Production and Verification Services Branch (CPVSB).
Before establishing your professional Corporation, you should understand any specifics required by your profession or regulatory body to be included within your Articles of Incorporation or elements that are relevant to the name that can be used.
ESC provides some key information for professional Corporations:
- Benefits of Incorporating
- Incorporate your Professional Corporation
- Additional Resources for Professional Corporations
- Order a Certificate of Status for your Annual Renewal
Benefits of Incorporating
A Corporation is an incorporated entity that carries on as a distinct person under the law considered as a separate legal entity. A business corporation is managed by Directors and Officers of the Corporation but is owned by the shareholders.
Here are just a few benefits of Incorporating a professional corporation:
- Corporation is a separate legal entity which has the same rights and obligations as a natural person
- Incorporating offers name protection
- Corporations enjoy lower Corporate Tax rates
- There are tax deferral and Income-splitting opportunities
- Shareholders of a corporation are subject to limited liability
- Family members as non-voting shareholders (Health Professionals) are permitted
- Home office and other deductible expenses that do not apply to individuals but do to Corporations
- Incorporating offers as protection of personal assets
Note: This list is not exhaustive. For a full list of benefits and for legal advice, we suggest contacting a legal professional.