Top Things You Probably Didn’t Know About Incorporating As a Health Pro
When it comes to growing your health or wellness practice in Canada, the word “incorporation” often shows up on your radar. But is it right for you? Is it worth it? And how does it really work?
If you’ve been googling late at night between patient charting and binge-watching Netflix, trying to make sense of it all, we get it. Incorporating isn’t exactly something they teach in school—or during your naturopathic residency.
So let’s break it down. Here are the top things you didn’t know about incorporating—and why now might be the perfect time to take the leap (with the right support behind you).
Incorporation Isn’t Just for “Big” Businesses
A lot of health professionals assume they need to be earning a ton before incorporation makes sense. But that’s not always true. Incorporating is less about how much you’re making today and more about how you plan to grow, save, and structure your business in the future.
At Tyagi Group Accounting, we’ve worked with solo-practitioners, clinic owners, and new grads alike. If you’re earning above $80K, have business expenses, or want to reinvest in your practice, incorporating could mean serious tax savings—and better long-term control over your income.
You Can Pay Yourself Differently (and Strategically)
As a sole proprietor, you pay personal income tax on everything you earn. Once incorporated, you have more options: you can pay yourself a salary, dividends, or a mix of both. This flexibility opens the door to tax planning strategies that can save you money—without sacrificing your lifestyle.
Inside our Business Foundations: Incorporating Webinar, we’ll show you how to:
Choose between salary vs dividends
Reduce your personal tax liability (while still contributing to RRSPs and CPP)
We even include a plug-and-play Excel template so you can see exactly how much you could save.
Your Professional Association Might Have Special Rules
Here’s one most people miss: your regulatory college or professional association may have specific rules about how you can incorporate. Whether you’re a chiropractor, naturopath, RMT or dietitian, these rules can affect everything from your company’s name to how your corporation is structured.
And if you mess it up? You may not be compliant—and that could mean big headaches later.
We cover all of this in our webinar with real-life examples and guidance that’s tailored to Canadian health professionals.
Incorporating Can Protect You (But Not Always)
Many people believe that incorporating instantly shields them from legal or financial liability. While it’s true that a corporation is its own legal entity, some liabilities still stick to you personally, especially in healthcare.
We’ll help you understand what protection you do get—and where you may still need professional liability insurance or other safeguards.
Incorporation Isn’t Forever—But It Can Be Expensive to Undo
Thinking of “just trying it out”? Unfortunately, incorporation isn’t like a gym membership. Once you incorporate, there are annual legal and tax filing requirements—and reversing it can cost even more than setting it up.
That’s why we always recommend running the numbers first. Our team helps you explore whether now is the right time—and what incorporation means for you 1, 3, or 5 years down the line.
It’s About Taxes and Financial Empowerment
Yes, incorporating can save you money. But more than that, it gives you structure, separation, and strategy. It transforms your practice into a business—and gives you more control over your money, your schedule, and your growth.
At Tyagi Group, we believe financial literacy shouldn't be reserved for MBAs. We make it accessible, refreshing, and real—because we know how much better life feels when you finally understand your business finances.
