We are here to provide tax, accounting and advisory support for your Dental practice.
As a dentist, you have devoted many years to enhancing your dental skills and building your practice. However, you may not have received training in the business, accounting and tax side of running a dental practice.
We at Edward & Manning have been providing accounting services to medical practitioners since our inception. Your main focus should remain on growing your dental practice and the continued support of your clients. Our medical specialist team works closely with your practice to provide the financial and accounting advice needed to make smart business and tax decisions.
Dentists who carry on their practices personally can pay income tax at rates in excess of 46%. These dentists are not permitted to split income with family members, except to pay “reasonable salaries” to family members who provide actual services to the practice. By incorporating a Medical Professional Corporation to carry on the dental practice, a dentist can achieve significant tax advantages by way of paying tax on practice earnings at a much lower corporate tax rate and income splitting with family members by paying dividends.
Incorporation of a dental practice can also provide additional tax savings if/when a practice is sold as the sale of shares could qualify for the life time capital gains exemption. The capital gains exemption exempts up to $800,000 in capital gains from tax on dispositions of Qualified Small Business Corporation (“QSBC”) shares. We can help navigate through the incorporation process as well as the continued corporate accounting.
We are pleased to offer the following services to dentist and dental practices:
- Timely monthly bookkeeping
- Profitability guidance, including understanding margins and Practice growth strategy
- Annual financial statement preparation
- Ongoing tax planning
- Corporate tax and sales tax filings
- Owner compensation planning
- Succession planning and corporate structuring guidance