A significant number of dentists choose to operate their practice through a professional corporation under the Ontario Business Corporations Act and the Regulated Health Professions Act. Once incorporated, a Certificate of Authorization from the Royal College of Dental Surgeons of Ontario (RCDSO) is required for the professional corporation to practice dentistry in Ontario. We routinely advise dentists on matters involving the incorporation, creation and maintenance of a professional corporation, to ensure regulatory compliance with the RCDSO, laws and regulations. The professional’s relationship with his or her professional corporation will be as an employee. We assist in preparing an employment agreement that will provide flexibility on choosing compensation arrangements. However, the dentist still has personal professional responsibility to his or her patients.
Incorporating a dental professional corporation can bring significant advantages, including being taxed at a lower corporate tax rate compared to a personal tax rate, the payment of dividends to shareholders, and tax deferral strategies. We routinely provide advice to dentists about who may own shares of a dental professional corporation and what types of shares may be issued to shareholders. We work directly with tax advisors and accountants to ensure that the most appropriate corporate structure is established in order to achieve long term goals.
Renewal Process for Dental Professional Corporations
The RCDSO requires that the Certificate of Authorization held by each dental professional corporation be renewed annually. The process to renew the Certificate of Authorization must be completed by August 31st of each year and requires the dentist to complete the online annual renewal application on the RCDSO website and provide the required documentation requested by the RCDSO including a Corporation Profile Report. The application contains questions that the dentist must answer with respect to their corporation in order for the RCDSO to determine whether the corporation continues to be eligible for a Certificate of Authorization. If the RCDSO determines that the corporation is no longer eligible for a Certificate of Authorization based on the information provided in the dentist’s renewal application, the RCDSO will not renew the Certificate of Authorization.
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Incorporation to Retirement
A multi-disciplinary suite of services tailored to assist dentists
Purchase and Sale of a Practice
A dental practice is one of the most valuable assets a dentist may own and the decision to sell or purchase a practice is significant. There are many considerations that should be made with respect to the sale or purchase of a practice and we work closely with clients and their advisors to identify the most appropriate strategies to achieve the goals of our client.
Estate Planning for Professionals
As you progress in your career, your estate plan may become more complex. Dual Wills may be used to protect certain eligible assets from estate and administration tax.
Retirement and Succession Planning
The development of an effective succession plan for your dental practice is a key part of ensuring a smooth transition into retirement.