In Quebec, a professional is defined as an individual who belongs to a recognized order and holds a permit from that order to practice their profession. This order serves as a regulatory authority, establishing specific rules that members are required to adhere to.
Professionals must adhere to the regulations established by their governing Order, which includes specific guidelines for structuring their corporations. These regulations cover aspects such as share distribution and ownership, liability assignment, and other important considerations. To ensure compliance, it’s crucial to follow a designated process during incorporation that aligns with the Order’s by-laws, ensuring all shareholder agreements, share restrictions, and foundational documents are properly created. If you have questions or need assistance with the incorporation process, please don’t hesitate to contact us.
A salary is a regular payment made to an employee in exchange for their work and services. In contrast, a dividend refers to the allocation of a company’s profits to its shareholders. A corporation can either reinvest its excess profits back into the business or distribute them to shareholders as dividends.
The best approach depends on your specific situation. If you’re looking to secure a home mortgage or loan, a regular salary may be the most suitable option. Also, by choosing to pay yourself a salary from the corporation, you will contribute to programs that provide social benefits, including pension and maternity/paternity benefits. This option can be particularly beneficial if you anticipate having children.
If you prefer to retain more cash within your corporation, dividends may be the better choice. This allows any surplus funds within the corporation to be reinvested.
Absolutely, the incorporation process involves creating several legal documents, so it’s advisable to have a lawyer handle the drafting for you.
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