CCPC incorporation, practice ownership, and wealth-building strategies for Canadian dentists.
Dentistry is among Canada's highest-earning professions. Gross billings vary dramatically by province, practice type, and ownership model. A dental practice with $600,000 in billings may net $200,000-$350,000 after overhead of 55-70%.
| Role | Gross Billings | Est. Net Income |
|---|---|---|
| Associate (salaried) | N/A | $100,000-$160,000 |
| Associate (% of production) | $350,000-$600,000 | $140,000-$240,000 |
| Practice Owner (solo) | $500,000-$1,000,000 | $200,000-$450,000 |
| Group Practice / Multi-chair | $1,000,000-$3,000,000 | $350,000-$900,000 |
| Specialist (ortho, endo, oral surg) | $600,000-$2,000,000 | $300,000-$900,000 |
Virtually all practice-owning dentists in Canada should operate through a Dentistry Professional Corporation (DPC) or CCPC. The corporate Small Business Deduction rate of approximately 12.2% in Ontario versus a personal marginal rate of 53.53% creates enormous tax deferral. A dentist earning $400,000 net who draws $180,000 personally leaves $220,000 inside the corporation taxed at 12.2% - a saving of approximately $90,000 versus personal taxation in one year.
Draw a T4 salary of approximately $180,000 to generate RRSP room ($32,490) and CPP contributions. Retain remaining income in the corporation at the SBD rate. Pay eligible dividends in low-income years such as parental leave or retirement. Invest retained earnings in a diversified portfolio inside the DPC.
Like physicians, dentists with corporations benefit from Individual Pension Plans (IPP) at age 40 and older. At age 50, an IPP may allow $50,000-$60,000 in annual deductible corporate contributions - far exceeding the RRSP limit of $32,490. The corporation bears the investment risk; you receive a guaranteed lifetime pension. Optimal strategy: use RRSP during early career, transition to IPP after age 40.
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