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Professional Corporation
In Ontario, a Professional Corporation is formed under the Business Corporations Act where permitted by the profession’s governing body. Normally a professional’s income (whether in a partnership or as an individual) is taxed fully in the year in which it is earned. By using a corporation, the taxes may be split between the individual and the corporation obtaining tax advantages.
The professional’s liability for misconduct etc. is still solely on the individual, business liabilities may be segregated.
There are complex rules regarding the name, directors, shareholders, bylaws and articles of incorporation.
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