What is a Health Professional Corporation in Ontario and How Can a Lawyer Help?

If you’re a health professional in Ontario, you may be considering setting up a Health Professional Corporation (HPC) as a way to protect your personal assets, minimize your tax liability, and potentially reduce your professional liability. But what is an HPC, and how can a lawyer help you set one up?

What is a Health Professional Corporation?

In Ontario, health professionals such as physicians, dentists, physiotherapists, and chiropractors can incorporate their practices as an HPC. An HPC is a type of corporation that is specifically designed for health professionals and provides certain benefits, including:

  1. Limited Liability – Incorporating your practice as an HPC can help protect your personal assets from business-related lawsuits and debts.
  2. Tax Advantages – An HPC can offer significant tax advantages, such as income splitting, tax deferral, and access to the small business deduction.
  3. Professional Status – Incorporating as an HPC can enhance your professional status and credibility with patients, colleagues, and regulatory bodies.

How Can a Lawyer Help You Set Up an HPC?

Setting up an HPC is a complex process that involves compliance with specific legal and regulatory requirements in Ontario. That’s why it’s essential to have a lawyer who is knowledgeable in this area to help guide you through the process.

Here are some of the ways a lawyer can help you set up your HPC:

  1. Incorporation Process – A lawyer can assist with the incorporation process, including filing the necessary paperwork with the Ontario government, drafting articles of incorporation, and preparing corporate bylaws.
  2. Shareholder Agreements – An HPC requires a shareholder agreement that outlines the rights and responsibilities of shareholders, such as ownership percentages, voting rights, and management roles. A lawyer can draft a shareholder agreement that reflects your goals and protects your interests.
  3. Compliance with Ontario Laws and Regulations – An HPC is subject to specific legal and regulatory requirements in Ontario, such as the Ontario Business Corporations Act, the Income Tax Act, and the respective health profession legislation. A lawyer can ensure that your HPC complies with all applicable laws and regulations.
  4. Tax Planning – A lawyer can provide guidance on the tax advantages of incorporating as an HPC and help you structure your HPC to maximize these advantages.
  5. Liability Protection – A lawyer can advise you on the liability protection benefits of incorporating as an HPC and help you develop strategies to minimize your professional liability.
  6. Employment and Independent Contractor Agreements – An HPC may employ or contract with health professionals and other staff. A lawyer can draft employment and independent contractor agreements that comply with Ontario laws and regulations and protect your interests.

In conclusion, setting up an HPC is a complex process that requires the expertise of a lawyer who is knowledgeable in this area. A lawyer can assist you with the incorporation process, provide tax and legal advice, and ensure that your HPC complies with all applicable laws and regulations. Contact a lawyer today to discuss whether setting up an HPC is the right choice for you and your practice. If you have any questions, please contact us at 1-877-892-7778 or info@falconlawyers.ca.

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