As long as we earn, there will always be an obligation to pay taxes, regardless of profession. As a medical professional, medical doctor, physician assistant, or nurse either working on a part-time or full-time basis, you will also have to file for an annual tax return on your earnings.
While you look after your patients, we’ve got our eye on all the top tax deductions for nurses and healthcare professionals.
In Canada, nurses can carry on the practice of their profession under a corporation’s name. Nurses who operate as a professional nursing corporation may have several distinct advantages over nurses working as sole proprietors or partnerships.
Nurses can legally organize into a professional service corporation and contract with one or more other individuals or business entities.
A nursing corporation is a type of professional corporation that is formally registered and is engaged in providing services that are within the scope of the nursing profession.
Only registered nurses can be shareholders in the corporation. Also, shares in the Professional Nursing Corporation may only be transferred to those who are licensed to practice registered nursing.
Nurses are uniquely qualified to start their own businesses in areas such as legal consulting, coaching, and home healthcare. If you are looking to start a business as a nursing service or buy into an existing business, there are numerous issues to consider. It can be a maze of issues but as accountants and business advisors we can assist you in all these areas plus provide advice on the preparation of a business plan, marketing plan, and cash flow budget.
Forming a nursing corporation is a great idea for nurses in Canada looking to save on self-employment taxes and receive additional liability protection. Incorporating a Professional Nursing Corporation will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
If you are a self-employed nurse in independent practice, you have options for incorporating your own business. These include incorporating with the Ontario or federal government. As a nurse, you also have the option of setting up a Health Professional Corporation with the College of Nurses of Ontario (CNO).
Regardless of which option you choose, we recommend you discuss your situation with expert accountants at Filing Taxes. We have a team of accountants well conversant with healthcare entities and healthcare incorporation issues to determine the best choice for you.
Attempting a “do-it-yourself” business entity as a health professional is not wise. Not only is legal advice required, but the entity should be modified to fit the health care business and the health care professionals for whom it is being created. There are many pitfalls that should be avoided. We can help you navigate the accounting and tax responsibilities that come with running a nursing corporation.
Healthcare accounting for the nursing corporation is complex. Nursing professionals need to invest a significant amount of time taking care of their finances and records. Coupled with increasing demands for accountability, consistently changing regulations, and intense public scrutiny, managing a company in the healthcare industry is challenging.
The Nursing Corporation’s utmost priority is to satisfy the patient it is treating. It has to do so by keeping the whole treatment cost-effective. This is where it becomes painful. For a medical facility to work effectively at its full potential, it has to provide cost-efficient treatment that is effective too. In simpler terms, the nurses and finance department have to work hand in hand to ease up the pain of the patient, both financially and physically.
Forming a nursing corporation is challenging but can be very rewarding. Running a busy medical practice requires tackling accounting and tax compliance issues that most doctors and nurses never anticipated before opening their doors. The health industry is drastically changing by the minute due to intensive ongoing research. Moreover, to accommodate patients, there are always new laws and discoveries coming out. In such a changing industry, financial managers are faced with significant challenges that they have to tackle. Since they handle the funds, all changes have to go through them.
All business owners need to budget, plan, and monitor their business performance. It is clear by now that medical offices work on the same structure as business organizations. Therefore, the need for a robust accounting department is a basic need. We know the pitfalls of the nursing industry and look forward to working with you to build your business and grow your wealth.
Our skilled accountants have decades of experience in providing tax, accounting, and payroll services to healthcare practitioners. We can take over bookkeeping, accounting and other time-consuming but necessary tasks so you have more time to spend with your patients. And our proactive tax planning strategies will keep your practice in compliance with the latest Canadian Federal and State tax laws while minimizing your tax burden.
The first step to hassle-free incorporation, accounting, tax returns, and tax planning starts by reaching out to one of the representatives at Filing Taxes. Our accounting firm specializes in medical practice accounting and tax services. We’re uniquely positioned to provide the accounting services, tax strategies, and practice management solutions your nursing corporation needs to survive and thrive. Our experienced and professional team at Filing Taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.