The Globe and Mail
Monday, April 14, 2003 - Page B16
Page 1 of 1
Incorporating has its benefits
Filings seen rising as awareness of rules spread
By CATHERINE MULRONEY
Ottawa lawyer Ted Mann jumped at the chance to incorporate his practice. "I incorporated in June, 2002, for two reasons. It
allowed me to take advantage of the small-business deduction, which means I pay less tax on the money used to run the business –
filing cabinets, letterhead – and incorporation affords some protection against supplier liability," Mr. Mann says.
Lawyers are just one of the many groups of regulated professionals now able to take advantage of amendments to the Ontario
Business Corporations Act that allow them to incorporate their practices into professional corporations. The legislation is similar to
that previously enacted in Alberta and British Columbia.
The list of other professions also benefiting from the Ontario amendments includes chartered accountants, dental hygienists and
real estate agents. They join the ranks of such professions as software engineers and management consultants who had earlier won
the ability to incorporate.
"Many professionals – lawyers, accountants, for example – found it unfair when they were doing work for small businesses and
saw the advantages they were not able to access," Mr. Mann says. "It's a great relief."
Although the Ontario legislation was passed in January, 2002, many of the associations governing regulated professionals have
only recently put in place the programs needed to incorporate, explaining each governing body's exact rules and regulations.
Since the Ontario College of Physicians and Surgeons put its program in place in November of last year, for example, it has fielded
about 750 inquiries about the process and issued close to 100 of the certificates needed to incorporate, a college spokeswoman
says. The college currently has 20,000 practising members.
While some professional associations have not yet been promoting the concept, it's bound to take