Part of transitioning into practice is making sure you create financial wellness. Download the full version of our New Physician eBook to explore the pros and cons of incorporation along with building your team of financial and legal professionals to support the business side of your career.
2.1 Should You Incorporate?
When you incorporate, you create a fresh legal identity (the corporation) that becomes the owner of your medical practice. Doctors typically incorporate to benefit from 3 key tax advantages:
- Income tax savings
- Tax deferral
- Income splitting
Learn how each one works in our free downloadable guide.
Don't Forget:
“If you need most or even all of your earnings to meet your day-to-day living expenses — which is not uncommon for physicians in the early years of practicing — then you may not be able to benefit from the tax rates on earnings in the corporation.”
- RBC Healthcare
2.2 Building Your Team of Legal and Financial Professionals
Your team of professionals should not only be able to advise you at this early stage of your career, but help you make the most advantageous decisions as your career evolves.
Learn more about how each of these members of your team will be able to support you:
- Lawyer
- Accountant
- Bookkeeper
- Financial Advisor
According to the Association of Faculties of Medicine in Canada (AFMC), the median debt for a medical school graduate is $80,000.
