As a physician in Canada (excluding Quebec), you’re no stranger to long hours and high-pressure decisions. But when it comes to managing your medical corporation’s earnings, one smart structural move could make all the difference: setting up a holding company.
It’s not just a tax trick — it’s a long-term wealth-building strategy that more doctors should be using.
What Is a Holding Company?
A holding company is a separate corporation that owns shares in your medical professional corporation (MPC). While your MPC earns income from your medical practice, the holding company’s role is to hold assets, such as cash or investments, and serve as a central hub for wealth accumulation.
Key Benefits for Physicians
Tax-Deferred Growth
Funds transferred from your MPC to your holding company as inter-corporate dividends are typically tax-free when properly structured. This means you can invest more, sooner, without triggering personal tax — allowing your capital to compound inside the corporate structure.
Asset Protection
A holding company can help insulate your investments from operational risks associated with your medical practice. It’s a simple way to separate business earnings from long-term assets.
Investment Flexibility
Your holding company can invest in real estate, the stock market, or even other businesses — all without needing to withdraw funds personally and incur tax.
Succession & Estate Planning
When used alongside tools like a family trust, a holding company can support capital gains exemption planning, smooth succession, and intergenerational wealth transfer.
Is a Holding Company Right for You?
Not every physician needs one — but if you have retained earnings in your MPC, or you’re thinking long-term about investing, planning for retirement, or protecting assets, this strategy is worth exploring.
Where MedTax Comes In
At MedTax, we help incorporated physicians across Canada (excluding Quebec) make confident, tax-smart decisions about their corporate structures. Whether you’re just getting started or already generating surplus income in your MPC, we’ll help you assess whether a holding company aligns with your goals.
Start with a Free 30-Minute Consultation
Get expert guidance tailored to your medical practice here — no jargon, no pressure, just strategic advice that helps you build long-term financial stability.
