Doctors & Dentists

I have developed an acute sense of what it takes to optimize the financials of Doctors and Dentists.

Today’s young Doctors and Dentists are in the fortunate spot where they will earn tremendous incomes almost from day one.   The predictability and consistency of your income makes it extremely worthwhile for you to consider some of the tax planning options that are available to minimize the income tax every year.

My wife is a doctor and I would encourage the same corporate structure for you as I have done for her.  Not only would I recommend incorporation for you but I would also recommend a holding company and a family trust to split income with spouses, extended family members and adult children.  There are even options to use your minor children to split income and significantly reduce income tax.

When asked when the optimal time to incorporate is I typically answer “as soon as possible.”  I had my wife incorporated within a month of her completion of her residency and we have achieved significant savings that would not have been possible without incorporation.

A Doctor or a Dentist should evaluate 3 primary considerations when selecting who their accountant and other professional advisors will be:

  1. Does this accountant have a significant portion of his practice dedicated to dealing with medical professionals and keeping current with the tax issues relevant to Doctors and Dentists?
  2. What is the age of this accountant compared to you?  I would suggest that a young 30 year old medical professional will have a more difficult time in a business relationship dealing with a 55+ year old accountant or advisor than if they found someone closer himself.  You should also consider that if you deal with a 55+ year old advisor it is almost a certainty that they will be selling/transitioning their practice in the next 5-10 years and you may not be as happy with the person they sell to.
  3. What is the availability of the accountant?  As a Doctor or Dentist your time is easily worth a couple hundred dollars per hour when you are working.  It seems insane to me that you would consider leaving your practice in the middle of the day to meet with your accountant.  I’d suggest you require that your accountant meet with you after office hours.

Are you ready for a no-obligation consultation?

Let’s sit down and discuss your vision and goals for your business, your finances and your future. The consultation is free and so is the coffee!

Get Started

Small Business

I specialize in accounting for Owner-Managed Businesses.

Business owners in today’s environment need an accountant that can help you quickly adapt to changes in tax laws or to make sure that you are provided with timely and accurate advice as you make investments and key business decisions.

Business owners are often not aware of some of the key tax planning options available to them such as the $750,000 Capital Gains Exemption.  By making a simple modification to the share structure at incorporation or recapitalizing an existing business to include spouses or possibly children the $750,000 Capital Gains Exemption will be multiplied and a business owner could register a gain of $2-3 million dollars without paying any income tax either on the sale of the business or in the estate on the death of the owner.

If your businesses have extensive retained earnings or unrealized capital gains you may want to consider a corporately owned life insurance policy that could be used to pay the taxes owed upon your death so that your heirs do not have to liquidate assets at distressed prices to pay the Canada Revenue Agency.  A corporately owned life insurance policy can also be structured as a tax planning tool to be used to take retained earnings out of your company on a tax free basis.

Do the hourly billings scare you from phoning your accountant or asking him to attend a meeting to advise you?  You need not be.  I do not charge my clients extra for meetings or phone calls.  I quote my clients an all-in fee every year that takes into consideration that I’m expecting you to have questions and have some needs beyond the basic compliance functions of completing an income tax return.

There are many different considerations and situations and no one business is the same but I have provided you with a couple considerations that could be extremely relevant to today’s owner of a small to medium sized business.  If your accountant has not talked to you about these things or if you would like a second opinion on your business I would encourage you to book an appointment with me for a no fee consultation to look at your situation in detail.

Are you ready for a no-obligation consultation?

Let’s sit down and discuss your vision and goals for your business, your finances and your future. The consultation is free and so is the coffee!

Get Started

If my father had hugged me even once, I'd be an accountant right now.

Ray RomanoComedian

I have mentioned before that financial intelligence is a synergy of accounting, investing, marketing and law. Combine those four technical skills and making money with money is easier.

Robert KiyosakiAuthor, Rich Dad Poor Dad