Doctors who are not practising through a health profession
corporation may be missing out on some significant tax advantages
and savings. It has been about 8 years since the Ontario government
changed some of the strict ownership rules that gave special
treatment to professional corporations for doctors and dentists
over other regulated health professions, operating their practices
through a medicine professional corporation ("MPC").
What is a professional corporation?
Similar to regular corporations, MPCs are distinct legal
entities in law. However, MPCs carry restrictions on their
corporate name and ownership structure. In addition, unlike regular
corporations, professional corporations may not necessarily shield
their shareholders from liability claims. The individual physician
that operates through a MPC would still personally liable to
patients and clients for any malpractice claims, and therefore
maintaining professional liability insurance is essential.
