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What Are Corporate Structures for Dentists?

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Restructuring your dental practice may look different for different dentists, depending on your current situation and future goals. Many dentists choose to incorporate their clinic as this offers great flexibility, improves efficiency, and minimizes their tax burden.

The most common forms of structures chosen by dentists in Quebec are:

  • Professional corporations
  • Family trusts
  • Holding companies

Each of these offers different benefits that may work for you. Please get in touch with a trusted legal representative for help analyzing the advantages of each option, as well as counsel regarding recent changes to tax legislation that could affect your dental practice. Call our law firm today to see how we can help!

What Benefits Are There to Incorporating your Dental Practice?

Incorporating a dental practice offers many advantages, particularly in minimizing the tax burden on the practicing dentist. This is especially true for dentists considering selling their practice and possibly facing huge capital gains taxes. We believe that every dentist should consult with a trusted lawyer about incorporating their practice because of the potential benefits of this process. It is never too early or too late to reap the rewards of incorporating your dental clinic, so reach out to us today to get started.

How Do You Qualify for Capital Gains Exemptions as a Dentist?

Capital gains taxes are the rates applied to selling large items, especially real estate and businesses. When a dental practice is sold, the owner could lose a huge portion of the proceeds to taxes if they don’t take advantage of the legal provisions for small business owners.

Some conditions that must be met to qualify for capital gains exemptions are:

  • A minimum of 90% of the fair market value of the company’s assets must be used in the operation of the business.
  • The owner must have retained possession of the company for the entire 24-month period prior to the sale.
  • The business must be considered a Canadian-controlled private corporation with at least 50% of the assets actively used in the business for the 24 months prior to the sale.

As many of these conditions are time-dependent, it is essential to incorporate your business right away to allow for optimal conditions at the time of sale. Reach out to our law firm today to see how we can help you start the process!

Can Our Lawyers Help You?

Our law firm has handled the incorporation process for many doctors and dentists over the years. We understand the unique needs of medical professionals in Quebec, and our knowledge of the law gives us the ability to get you the results you need when incorporating your dental practice. Don’t go through this complicated process alone. We will go over your company’s current structure and financial situation, as well as your personal needs and goals, to come up with the best structure and plan for your dental business.

Contact us today at (438) 805-5515 to get started right away!

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