We are here to provide tax, accounting and advisory support for your medical Practice.
As a physician, you have devoted many years to enhancing your medical skills and building your practice. However, you may not have received training in the business, accounting and tax side of running a medical practice.
We at Edward & Manning have been providing accounting services to medical practitioners since our inception. Your main focus should remain on growing your medical practice and the continued health of your clients. Our medical specialist team works closely with physicians and medical practices to provide the financial and accounting advice needed to make smart business and tax decisions.
Physicians who carry on their medical practices personally can pay income tax at rates in excess of 46%. These physicians 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 medical practice, a physician 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 medical 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 physicians and medical practices:
- 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