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Use of Corporations in Income Tax and Wealth Planning

Design and implementation of corporate structures to take maximum advantage of the significant income-earning capacity of dental professionals.

Professional Corporations: To take advantage of the low rate of income tax charged to such entities (currently 13.5% in British Columbia).

Trusts: for the efficient and flexible management of both your annual income, and your accumulations of investment capital. Trusts provide complete flexibility to make discretionary decisions about the direction such disbursements can take, without concern for outside influence – of particular benefit within families.

They can also control entitlement to the capital gains deduction (currently, $813,600 per person), a powerful tax planning tool to be exploited if, as, and when the dental practice is ever sold.

Holding Corporations: For the safe and confidential accumulation of investment capital for the long-term, and, eventually, retirement.

Special “limited participation” Shares: For those who do not wish to deal with the additional complexities of a trust structure, but do want the benefits of income splitting (usually, with family members who qualify), these type of shares can be installed into professional corporations. They offer the flexibility of achieving a specific income-splitting goal, for a limited time (for example, during your children’s college years), without downstream consequences as to entitlement or any other rights.

We have been clients of Lohn Caulder LLP for a number of years now. They have helped our business over the years by providing more than just typical accounting needs. We trust their valuable advice and guidance in handling any surprises that may occur.

Dave Mander, President, Imperial Security Group
Bob Shoker, Vice President of Operations, Imperial Security Group

Our decision to use Lohn Caulder four years ago has proven to be an excellent one. We have been exceptionally happy with Jason and his entire team. We were so impressed we also moved our bookkeeping duties over to LC Bookkeeping Inc. Doing this has enabled us to focus on our core business and not have to concern ourselves with accounting. Truly a great decision. Many thanks to Jason and the World Class team .

Neil Kursan, Co-owner, Pristine Labour Inc.

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