Montreal Professional Incorporations Lawyers Facilitating Business Growth and Expansion
Many Quebec healthcare professionals, including physicians, dentists, and optometrists, begin their practices as independent contractors, sole proprietors or they elect to create a partnership with others in their field. These business structures are initially appealing due to the simplicity of their creation and dissolution, which can provide needed flexibility as you forge ahead with your career. However, as your practice expands, it may be highly beneficial to consider professional incorporation as part of an overall plan for long-term growth and asset protection for medical professional corporations.
Understanding when and how to incorporate your professional practice is essential. While incorporation for doctors has many benefits, it also involves costs and complexities that may make it inappropriate for certain situations. Our dedicated lawyers can analyze your practice’s operations, objectives, and aspirations to determine the business structure best suited to your needs. We understand that embarking on major changes in your practice can be daunting. However, our team is passionate about providing personalized legal support during every step of the incorporation process and beyond so you can bring your plans to fruition with your medical practice.
What is Incorporation and How Might it Further Your Professional Goals?
Incorporation creates a legal entity for your practice that is separate from your personal finances and affairs. A corporation possesses many of the same legal rights as an individual and may purchase property, secure loans, and receive remuneration from clients, patients, or insurers. Forming an isolated vehicle through which you can practice your profession has the advantage of limiting some of your personal liability for business-related financial risks. Corporations are also taxed at a preferential rate, so restructuring could significantly reduce your overall tax burden. Additionally, a business entity can issue and trade shares to investors, which may be desirable if you are looking to expand or sell your practice.
What Preparatory Steps Are Necessary to Ensure Incorporation is in Your Practice’s Best Interests?
Incorporation requires extensive evaluation and planning to implement correctly. Every professional order dictates specific rules and regulations that must be carefully followed. Skipping fundamental steps early in the process can result in negative consequences and undue hassle for a professional medical corporation. Our firm can help you avoid these difficulties and ensure that you utilize the appropriate corporate structure for your practice and goals.
In furtherance of these aims, we request that all clients considering incorporation complete a preliminary intake form and gather pertinent information with the assistance of their financial advisor and accountant. Helpful information may include your annual income, an estimated monthly household budget, an accounting of your assets and debts, the dates debt payments are due, and any significant expenses anticipated in the next five to ten years. You should also closely consider and describe your career aspirations. By completing these exercises, you can be prepared to engage in an in-depth first meeting with our legal team, where we can discuss personalized strategies based on your current circumstances and future goals.
What is the Procedure for Professional Incorporation in Quebec?
Once the planning stages have been completed, the incorporation process can commence. For many medical professionals, the procedure can be broken into four basic steps.
Incorporation, Registration, and Organization
Our legal team will establish the specific requirements for incorporating and registering your business federally or provincially based on your profession and desired outcomes. Once we have confirmation that the government has approved the incorporation, we can obtain corporate tax numbers and organize a legally required minute book detailing your corporate activities. Aside from being mandated by law, a carefully compiled minute book plays an essential role in securing funding from investors, protecting you in the event of an audit, and validating the corporation’s operations to potential buyers. Our team can advise you on further steps you may need to take at this time, such as opening bank accounts and applying for credit cards for your medical professional corporation.
Obtaining Permission from your Professional Order
A crucial step in incorporation is applying to your professional order for permission to practice as your new corporate entity. Unfortunately, obtaining this permission can be time-consuming. Therefore, it is vital to plan ahead for any potential delays. In your initial meeting, we can provide more detailed information on what to expect during this step and how to prepare.
Registering Your Corporate Account With the Régie de L’assurance Maladie du Québec (RAMQ)
Medical professionals who receive patient payments through the RAMQ must register their corporate accounts with the organization. By updating your payment information, you ensure that all future payments are routed to your business accounts as opposed to your personal accounts. Keeping your corporate and personal finances entirely separated is critical to maintaining the limited liability and tax benefits associated with incorporation.
Updating Your Professional Liability Insurance
To ensure continued insurance protection, you should inform your liability insurance carrier that you will subsequently be operating your practice as a corporation. Failure to inform your insurer in a timely manner can result in a potentially detrimental gap in coverage for not having informed your insurer of a change in your professional situation. MÉDICALOI can assist you with this step and help tie up any other loose ends as you transition into conducting your practice as a corporate entity.
Why Consult Our Medical Incorporation Lawyers?
At MÉDICALOI, we pride ourselves on building strong, lasting client relationships. We aim to create flexible business and legal strategies that can adapt and grow with your professional practice. A professional corporation generally should not be a static entity. Your corporation must be properly maintained through annual reviews, structure upkeep, and frequent reevaluation of tax and business needs to remain effective and efficient.
Whether you are exploring incorporation for the first time or wish to review the suitability of your current corporate structure, our skilled lawyers can provide detailed guidance based on years of experience. Reach out to our Montreal law office today at 438-805-5515 to schedule an in-depth complimentary intake meeting to learn how we can support your business goals.