This author explores the different ways a professional corporation can benefit a lawyer. In particular, he discusses the impact of recent changes to the professional corporation legislation in Alberta, specific to the context of practicing law. The author covers these issues: tax deferral, income splitting, appropriate methods for adding family shareholders to a PC, and the appropriate use of a family trust with a professional corporation. He also discusses paying salaries versus dividends, strategies for removing assets from a PC without paying tax, strategies for structuring a professional partnership, and the issue of whether a professional corporation can be a personal services business.

This paper was presented at the Law and Practice program in November 2013.