There are three ways Canadian Physicians can setup there Tax Status;
Medical professional corporation
✓ Most common choice
Your corporation becomes a separate legal entity and is owned by shareholders (you decide who your shareholders are).
Tax implications
The corporation files its own tax return and pays the corporate tax rate.
Corporation is taxed at 12%1
Partnership with other physicians
You create a partnership agreement with your partners detailing how you will share expenses, revenue and responsibilities.
Tax implications
Each partner in the agreement is responsible for their own personal income tax return.
You may be taxed at 50%2 on your share
Sole proprietor
The income you receive is treated as regular employment income, as though you were a full-time employee at a company.
Tax implications
You file your own tax return and are assessed based on your personal tax bracket.
You may be taxed at 50%2
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