Medical and dental professional corporations
Most regulated health professionals in Ontario, including physicians, specialists, dentists, psychologists, chiropractors, physiotherapists and optometrists, can practise through a professional corporation, subject to their college’s rules. Veterinarians can too. A professional corporation lowers the tax on income you don’t need right away and gives you control over when and how you’re paid.
- Incorporating, and keeping the corporation in good standing with your college
- Bookkeeping for OHIP remittances, private billings and practice expenses
- Clinic payroll for staff, and a monthly salary for you if you want one
- Cost-sharing arrangements between physicians
- T2 corporate and T1 personal returns, prepared together
- Salary and dividend planning, and RRSP room
- Investing retained earnings without losing the small business deduction
- HST reviews for services that may be taxable
When should a doctor incorporate?
Usually when your income is higher than what you spend each year. Income kept in the corporation is taxed at the small business rate, 11.2% combined in Ontario on the first $500,000 of active income since July 1, 2026, instead of your personal rate, which is above 50% at the top bracket. You pay personal tax later, when you take the money out, which gives you control over the timing.
Doctors, dentists and HST
Most patient care is exempt from HST, so many practitioners never register. Some services can be taxable, such as cosmetic procedures and certain reports or assessments done for third parties like insurers. Once taxable services pass $30,000, registration is required. We review your billings so you know where you stand.
Clinics and practices
We also work with medical clinics, multidisciplinary health clinics and veterinary practices on bookkeeping, payroll, HST and monthly financial reports for owners and boards.
Common questions
Should my medical practice incorporate?
Incorporation tends to make sense when you earn more than you need to live on, so the extra can stay in the corporation at the lower rate. We compare your after-tax income with and without a corporation, including the cost of running one, before you decide.
Can my family own shares of my medical professional corporation?
In Ontario, family members can hold non-voting shares of a medicine or dentistry professional corporation. Dividends paid to them are subject to the tax on split income (TOSI) rules, so the benefit depends on their age and involvement. We review this before shares are issued.
Do doctors charge HST?
Most medical and dental services are HST-exempt. Cosmetic services and some third-party reports and assessments can be taxable, and once those pass $30,000 in a year you need to register.
Should I pay myself a salary or dividends?
Salary is deductible to the company, creates RRSP room and builds CPP. Dividends are simpler and avoid payroll, but create no RRSP room. Many owners use a mix. The right answer depends on your income needs, retirement plans and what the company earns, so we model it each year.