Canadian Money Forum banner
1 - 1 of 1 Posts

11 Posts
It isn't clear from the initial question who the regulatory of the professional corproation is. Different regulators have different rules that augment the provincial statutes on professional corporation. For example, the CMA has much tighter rules on who can own a professional corproation than the dentists in Ontario.

In other words, your first source of advice should be to the regulator to see what is permissible (activities ancillary to the practice of whatever is premissible by most regulators under the law but then the regulator has its own special twist).

The larger question is why do you want to expose your investments to your potential professional practice liability? As you know professional corporations do not shield the shareholder from E&O liability so there is no real corporate veil to hide behind for this type of liability (which is the largest source of liability for most professional corporations).

There are tax and legal structures permissible which would accomplish your goal while mitigating your liability.

I would add to MoneyGal's suggestion and first go to your regulatory than a professional to seek advice. Good luck.
1 - 1 of 1 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.