Hello All
I have been talking to some of my business associates about the pros and cons to becoming incorporated.
How much protection does a corporation give me as an Acupuncturist ?
How much savings will I get from Tax, write-off's, ...
I know there are many more expenses becoming incorporated, Initial incorporation fees, annual fee's, accountants, .... does anyone have a base figure for the amount it will cost me annually to be incorporated as an Acupuncturist ?
Thanks for all your help
Ryan
Hello Ryan
I have also looked into incorporating as an acupuncturist. I still am not sure of all the legal areas and pro's and cons but I am aware for the protection side of things. From my understanding you are only protected in business type transaction, you CAN get sued personally if you harm someone (ie puncture a lung). I don't think the Corporation will protect you in that instance.
Hopefully someone can confirm this for me/us
A
as medical professionals in British Columbia it is worth while to incorporate if you make more than you need to live off of and you want to shelter income you do not need to spend now from higher tax rates. Not so useful for protecting you from liability as the corporate shell fro professionals in Canada does not help you with practice legalities. Only businesses like bank bankruptcy, patient trips in you roffice etc.)
As a rough number. basically, if after using you rincome to live and max out your RRSP ($18,500) you still have lots left over then incorporate. My rile of thumb is that if you do not have enough money to max out your RRSP then you probably do not need to use a corpration as tax planning.
Lorne
www.acubalance.ca
www.prodseminars.com
Hi Ryan,
I was filed as self-employed for many years and incorporated in Jan 07. I have TONS of info for you. Too much to write. Call me 212-894-0767.
Be Well,
Juliette Aiyana
http://www.amazinghealing.com
In the US, the corporation is supposed to protect you from personal liability. If something bad happens, they can sue for the clinic's assets, but not your personal property such as your home. Some professionals go so far as to own all the clinic's assets and lease them back to the clinic. So in theory there are no real assets to sue for.
There have been cases in the US where persistent lawyers overcome the corporate veil protection. This is usually in cases of gross negligence.
I'm surprised that Canada might not have the same protection (if AcuGuru is correct). I thought this is common law - which all current and former British territories inherited. (See http://en.wikipedia.org/wiki/Common_law#Basic_principles_of_common_law)
Joined: 2006-11-25