A business that provides professional services to the public may be entitled to establish a professional corporation. There are many benefits to incorporating your professional services and our tax specialists at SRJ Chartered Accountants can offer all the services required for your corporation.
Professional Corporation Tax Advantages
Tax Specialists in Toronto
Professionals that may incorporate their services include:
- Chiropractors
- Dental hygienists
- Dental surgeons
- Dental technologists
- Pharmacists
- Physicians and surgeons
The complete list can be found here and additional background information can be found on the Ministry of Finance website.
The laws regarding incorporation of a professional service corporation can be quite complex. For this reason it is crucial that you consult with our team of expert tax specialists in Toronto before determining the best course of action for you and your business. We will work to advise you with the best solution for timing, setup, structure and maintenance of your corporation.
Other Tax Benefits
Our tax specialists in Toronto will handle every step of the process including filing the articles of incorporation, bookkeeping, preparing financial statements and preparing and filing all the necessary tax documents and the corporate income tax return.
We understand that most professionals may not want to use a good chunk of their valuable time and resources on all the accounting, legal and tax issues that arise. Our goal at SRJCA is to handle all these issues so you can focus on what you do best.
Incorporating your services will also allow you to benefit from favourable tax rates for professional corporations in Ontario. By merely incorporating your business you can save thousands of dollars every year by lowering the overall income taxes you pay. An individual with professional earning income in the highest tax bracket pays nearly 50% of their income in taxes. On the other hand, that same money earned inside of your professional corporation is taxed at 15.5%.
Tax Flexibility & Income Splitting
In addition to the tax benefits received by incorporating your services, there is also more flexibility in how you pay yourself. A sole proprietorship gets taxed on earnings right when it is received whereas a professional corporation has the choice to defer taxes by leaving money inside the corporation until it is needed or until it is more beneficial from a tax perspective.
Other methods of receiving favourable tax treatment include:
- Employing a family member and paying them regular salary
- Paying dividends to yourself as a shareholder
- Deferring income inside the corporation until a lower tax bracket year
- Income splitting with spouses, parents, and children
There are many tax saving opportunities available if a professional corporation is properly set up. Consult our team of tax specialists in Toronto to establish a corporation that meets all your needs. We will find the best methods to minimize taxes for you.
Professional Corporation Tax Advantages
- Benefit from favourable tax rates — reduce from 50% to 15.5%
- Flexibility in how you pay yourself
- Employ family members for additional tax savings
- Pay yourself dividends as a shareholder
Professional Corporation
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Experts in incorporation, SRJCA can guide you through the process of turning your business into a professional corporation. We are here to take the daunting task off your hands so you can focus more on running your business. Set up a meeting with SRJCA to help you plan the process.
SRJ Chartered Accountants has two conveniently located offices in the Greater Toronto Area.
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Client Success Stories
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Shayan Rashid, CPA
Co-Founder
As Co-Founder of SRJ Chartered Professional Accountants, Shayan has spent over a decade helping business owners across more than a dozen industries navigate complex tax and accounting challenges. From healthcare practitioners and legal professionals to tech startups and eCommerce brands, his strategic approach focuses on reducing tax burdens and building sustainable financial systems that scale with each client's growth.
Junaid Usmani, CPA, CA, MTax
Co-Founder
Junaid brings deep expertise in corporate tax planning and advisory services to clients across every industry SRJ serves. With a focus on professional corporations, holding company structures, and multi-jurisdictional tax strategy, he helps business owners make informed decisions at every stage, whether they're incorporating their first practice, expanding a tech company, or preparing for a business sale. His attention to detail and proactive approach have made him a trusted partner for self-employed professionals across Toronto.
Tracie Heier, CPA, CA, MPAcc
Partner
Tracie plays a key role in client relationships and engagement at SRJ, working closely with business owners across healthcare, professional services, and growing enterprises. She specializes in translating complex accounting concepts into practical guidance, helping clients understand their numbers and make confident decisions. Her collaborative approach ensures every client, from solo practitioners to established firms, feels supported throughout the year, not just at tax time.