Accounting built for
the way professionals work.

Many regulated professionals — lawyers, accountants, engineers, and some healthcare practitioners — can incorporate under their governing bodies. A PC lets you access the small business tax deduction, retain earnings at lower corporate rates, and split income through dividends.

Common deductions include home office costs, professional memberships, business-use software, travel, professional development, and communication expenses. If incorporated, the corporation can deduct reasonable salaries paid to you and eligible family members. Receipts and mileage logs are essential in a CRA review.

Salary creates RRSP contribution room and CPP entitlement. Dividends can be more tax-efficient and avoid CPP premiums. Most incorporated professionals use a combination of both. The optimal split changes as income levels change, so we model it annually for your situation.

A CCPC must file its T2 return within six months of fiscal year-end. Tax balances are due two or three months after year-end. GST/HST returns are due based on your reporting period. Missing any deadline triggers CRA interest and penalties.

Yes, with proper structuring. The corporation pays you rent for home office use, creating a corporate deduction and rental income for you. CRA has specific documentation requirements for this to be valid. We structure it so you capture the deduction without a reassessment.

Most professional services — legal, accounting, engineering, consulting — are taxable supplies subject to GST/HST. Registration is mandatory once revenues exceed $30,000. You collect GST, claim input tax credits on expenses, and remit the difference. Some healthcare services may be exempt.

Retain engagement letters and client contracts, invoices, receipts for business expenses, payroll records if incorporated, bank and credit card statements, and GST remittance records. CRA requires records for at least six years. Organized records significantly reduce audit risk.

Income splitting through a professional corporation is subject to the Tax on Split Income rules, which apply to dividends paid to family members. Eligibility depends on your profession, your spouse's involvement, and their age. We assess your situation before recommending any family dividend strategy.