Whether you’re buying a dental practice, or you are an established dentist, determining if and when to incorporate is an important decision. To give you a quick answer to this question, we’ve created a quiz with some simple questions geared towards incorporation for dentists in Canada. Your responses will help us tell you if incorporation is right for you.
Your answers won’t be collected or stored anywhere unless you submit them upon completion of the quiz. Once you get your response, you can elect to submit your answers. At this point someone on our team will get in touch to discuss the options available for your specific situation when it comes to incorporation.
Deciding Whether to Incorporate as a Dentist
The benefits of incorporation can vary greatly based on your personal and professional situation. One major factor has to do with buying or owning a dental practice versus practicing within a different organization. There are also considerations related to your personal situation that can have a big impact on your timing and specific plan around incorporation.
Buying A Dental Practice
If you’re buying, or planning on buying a dental practice, incorporating before making a purchase often makes the most sense. There are instances where specific timing needs to be considered. However, the overwhelming majority of our clients see a benefit from incorporating before purchasing a dental practice.
Questions About Your Personal Situation
There are many individual factors dentists should consider prior to incorporation. Some of the key things we consider include the following:
- Are you planning on buying a home within the next few years, and do you have a down payment saved?
- Do you have unused RRSP contribution room?
- What’s your anticipated income as a dentist over the next 12 months, and do you need the majority of your professional income to fund personal living expenses?
- Do you plan on going back to school, taking personal or parental leave, and if yes, do you have money saved to fund your living expenses while on leave?
- Are you a Canadian or American citizen, and are you considering extended travel or a permanent move outside of Canada in the near future?
- Are you close to retiring or planning on retiring early?
Answers to questions like these give us a snapshot of the benefits and drawbacks you’ll receive from professional incorporation. While there are additional factors we’ll want to consider, your responses to the questions in our quiz will provide general guidance.
We wrote the book on professional corporations in Canada and look forward to helping you, as a dentist, understand the benefits and applications of operating as an incorporated professional.
Ready to find out if incorporation is right for you?