By law, a professional in Quebec is any person who is a member of an order and who has a permit issued by that Order to practice his profession. The order will act as a governing body to its members and enact specific rules that must be followed by its members.

The full list of professionals order in Quebec can be found here: https://professions-quebec.org/en/quebec-interprofessional-council/about-us/members/.

Since professionals are governed by the rules set out by their Order, they must also follow all rules related to the constitution and creation of their corporation. Most professional orders have specific requirements with regards to how a business should be structured, how the shares will be distributed and owned, how liability can be attributed and much more. Therefore, when incorporating a professional’s business, a specific process needs to followed in order to ensure that all shareholder agreements, share restrictions, share descriptions and constituting documents are created according to the Order’s by-law.

Incorporation creates several tax advantages for the professional. Notably, you will be able to benefit from a lower corporate tax rate that varies between 19% and 23$ which will allow you to make greater tax savings in the long term.

As a professional, member of an Order, you should be aware of two things:

1. The governing Act or Statute that sets out the rules for the members of your order
2. That your corporation is compliant with the professional rules regarding structure, operation and management

A salary is a fixed compensation paid periodically to an employee for the services and work rendered.

On the other hand, the dividend is the distribution of profit made by a company to its shareholders. All surplus in profits made by a corporation can either be reinvested into the company or be distributed to its shareholders as a dividend.

Yes, the incorporation process requires the drafting of various legal documents and having an attorney draft those documents for you would be highly recommended.

If you pay yourself a salary from the corporation, you will also be paying a contribution which in exchange will provide you with certain social benefits like pension, maternity and paternity benefits. If you plan on having children in the future, this can be an advantageous option.

On the other hand, if you pay yourself in dividends, you only pay taxes on the amount distributed without having to pay for any contributions. Therefore, any excess capital remaining in the corporation can be reinvested.