Professional Corporations Ontario – CPA Tax Accountant Toronto & Scarborough

Tax, Bookkeeping and Accounting Services for Ontario’s Regulated Professionals (professional corporations) in Toronto, Scarborough, North York, Markham, Mississauga, Ajax, Pickering, Whitby, Oshawa, Bowmanville, Oakville, Hamilton and across Ontario

Incorporating your professional practice into a Professional Corporation (PC) can significantly defer your immediate tax burden, protect your personal assets, and help grow your wealth efficiently. But each regulated professional in Ontario—Doctors, Dentists, Lawyers, Engineers, Accountants, Chiropractors, Optometrists, Veterinarians, and others—must meet strict guidelines from their governing regulatory body. Corporate Tax Accountants at our CPA firm specialize in ongoing bookkeeping, accounting, and CRA-compliant tax services tailored specifically for Ontario professionals.

Who Can Incorporate a Professional Corporation in Ontario?

You’re eligible for a PC if you’re a regulated professional licensed by an Ontario governing body, including:

  • Physicians and Surgeons – College of Physicians and Surgeons of Ontario (CPSO)
  • Dentists – Royal College of Dental Surgeons of Ontario (RCDSO)
  • Lawyers and Paralegals – Law Society of Ontario (LSO)
  • Chartered Professional Accountants – CPA Ontario
  • Engineers – Professional Engineers Ontario (PEO)
  • Architects – Ontario Association of Architects (OAA)
  • Chiropractors – College of Chiropractors of Ontario (CCO)
  • Optometrists – College of Optometrists of Ontario (COO)
  • Veterinarians – College of Veterinarians of Ontario (CVO)
  • Physiotherapists – College of Physiotherapists of Ontario (CPO)
  • Other regulated professions as allowed by Ontario law

How to Incorporate Your Professional Corporation in Ontario?

The incorporation process varies slightly depending on your regulatory body, but generally includes:

  1. Name Approval:
    • Must comply with your professional body requirements.
    • Typically includes your personal name followed by “Professional Corporation” or “Prof. Corp.”
  2. Articles of Incorporation:
    • Prepared in accordance with the Business Corporations Act.
    • Filed electronically with the Ontario Ministry of Public and Business Service Delivery.
  3. Approval from Regulatory Body:
    • Application submission and certificate of incorporation must be sent to your governing body (e.g., CPSO, RCDSO, LSO).
    • Regulatory body reviews and issues a Certificate of Authorization (COA).
  4. CRA Registration:
    • Obtain a Business Number (BN), GST/HST, payroll and other necessary accounts with the Canada Revenue Agency.
  5. Minute Books & Corporate Records:
    • Establish and maintain accurate minute books, share certificates, and corporate registers.

We can assist your incorporation service provider every step to ensure your PC is set up quickly, correctly, and fully compliant.

Taxes, Bookkeeping & Accounting Requirements for Professional Corporations

Professional corporations must meet specific CRA and regulatory requirements, including:

🔸 Taxes (CRA Compliance):

  • T2 Corporate Income Tax Return filing (within 6 months of fiscal year-end).
  • Corporate taxes: Ontario Small Business rate (12.2%) on the first $500,000 of business income, thereafter general rate (26.5%).
  • Salary vs. dividend strategies to optimize personal tax planning.
  • CRA-compliant GST/HST return filing.

🔸 Bookkeeping & Accounting:

  • Accurate monthly or quarterly or annual bookkeeping as per CRA standards.
  • Preparation of annual financial statements with compilation engagement report.
  • Payroll management and compliance (T4 and payroll deductions).
  • Filing shareholder dividends (T5 slips).

Our Professional Corporation Services

  • CRA registration for Business Number, GST/HST, and Payroll
  • Corporate Tax Return (T2) preparation and filing
  • Financial statements preparation
  • Salary vs. dividends remuneration planning
  • GST/HST return filing (if applicable)
  • Tax installment calculation and tracking
  • Year-end planning and compliance
  • Assistance during CRA reviews or audits

Filing Timelines, Tax Rates & Penalties

🔹 Filing Deadlines:

  • T2 Corporate Tax Return: Due six months after fiscal year-end
  • GST/HST returns: Monthly, quarterly, or annually based on election
  • T4/T5 slips (for salary or dividends): Due by end of February annually

🔹 Corporate Tax Rates (2025):

  • Federal + Ontario small business rate: 12.2% on first $500,000 of active business income
  • General corporate rate: 26.5% on income above the small business threshold

CRA – Corporation Tax Rates

🔹 Penalties for Non-Compliance:

  • T2 late-filing penalty: 5% of unpaid tax plus 1% per complete month overdue (up to 12 months)
  • Repeated late filing: Penalties double to 10% plus 2% per month for the second offense within 3 years
  • Interest on late tax payments: Compounded daily
  • CRA audit risk increases with non-compliance

Why Choose Us for Professional Corporation Services?

✅ Deep Experience: Expertise assisting Ontario professionals in diverse fields.

✅ Proactive Tax Strategies: Expert guidance on salary vs. dividend strategies, tax deferral and tax-saving strategies.

✅ CRA Compliance: Peace-of-mind with accurate tax filings, bookkeeping, and audit-ready records.

✅ Responsive Support: Year-round services tailored to busy professionals.

FAQs – Professional Corporations in Ontario

1. Should I incorporate as a professional?

If you’re earning over ~$100,000 annually, incorporation may offer tax deferral, limited liability, and investment advantages. We’ll evaluate your situation and guide you.

2. What’s the difference between a regular and professional corporation?

A Professional Corporation is regulated by your professional body, has naming restrictions, and shareholders must typically be members of that profession.

3. Do I need to charge HST in my PC?

Some professionals (like consultants) may need to charge HST; others (like doctors) may be HST-exempt. We’ll review your services and determine your requirements.

4. Can I keep income on my PC and invest it?

Yes. Retained earnings in a PC can be invested for tax-deferred growth. However, passive income rules apply if you exceed $50,000/year in investment income

5. How do I pay myself from my professional corporation?

We help you structure salary and/or dividends payments optimally, balancing tax efficiency and compliance.

Speak to our Corporate Tax Accountant Scarborough Today

Whether you’re thinking about incorporating or already operating a Professional Corporation, we provide reliable, tax-efficient, and fully compliant services tailored to your profession.

📧 Email us: info@maqcpa.ca
📞 Call us: (416) 901-4126