Whether you’re a new graduate just starting your career or you are an experienced physician, 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 physicians and other medical professionals 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 Physician
The benefits of incorporation can vary greatly based on your personal and professional situation.
Questions About Your Professional Situation
Things to consider when making the decision to incorporate include:
- Are you planning on buying a medical practice?
- Are you still in school/in your residency?
- If you’re an established professional, how many more years do you plan to work?
An important thing to consider is if you plan on buying a medical practice. In most cases, if you’re buying a practice, incorporation makes sense. If you’re still in your residency you may want to wait a while before incorporating. Or if you’re nearing the end of your career and are thinking about retirement, incorporation might not be the right choice. Regardless of whether you incorporate, we can help you plan with other investment vehicles to meet your financial needs.
Questions About Your Personal Situation
There are many factors that you should consider personally prior to incorporation. Some of the key things we’ll consider are:
- 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 physician 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, or 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 physician, understand the benefits and applications of operating as an incorporated professional.
Ready to find out if incorporation is right for you?