As a physician in Canada (excluding Quebec), you’re focused on delivering exceptional care while managing a growing and complex financial life. One of the most overlooked but powerful strategies to build, protect, and transfer wealth over time is using a holding company.
At Imperial Lifestyle Management, we work exclusively with medical professionals to develop long-term financial plans that go beyond basic tax preparation. Incorporating a holding company isn’t just about reducing taxes — it’s about creating a structure that supports financial growth, asset protection, and legacy planning.
What Is a Holding Company?
A holding company is a separate corporation that owns shares in your Medical Professional Corporation (MPC). Your MPC earns income from your medical practice, while the holding company acts as a wealth-building hub, holding cash, investments, or shares in other ventures.
This setup creates a powerful layer of separation between your operating income and your long-term assets.
Why Physicians Use Holding Companies
1. Tax-Efficient Growth
When properly structured, your MPC can transfer after-tax earnings to your holding company via intercorporate dividends, often without immediate tax consequences. This means you retain more capital inside your corporate group, allowing for faster compounding through strategic investment — all while deferring personal tax.
2. Asset Protection
Your medical practice carries inherent operational risks. A holding company allows you to separate investment assets from potential liabilities tied to your practice. This separation creates a safeguard, helping to preserve your wealth over time.
3. Broader Investment Opportunities
With funds inside your holding company, you gain flexibility to invest in:
- Real estate (rental properties or commercial units)
- Public or private equities
- Joint ventures or other corporate opportunities
All of this occurs within the corporate structure, giving you more control and tax efficiency compared to withdrawing personally.
4. Strategic Estate & Succession Planning
Holding companies are powerful when paired with tools like family trusts, enabling:
- Capital gains exemption planning
- Efficient business succession
- Intergenerational wealth transfer
- Minimized estate tax exposure
This strategy helps you ensure that the wealth you’ve built remains intact — and passes smoothly to future generations.
Is a Holding Company Right for You?
Not every physician needs one, but if you:
- Are accumulating retained earnings in your MPC
- Are interested in investing corporately
- Want to protect long-term assets from business risk
- Are thinking ahead to retirement or legacy planning
…a holding company may be a highly effective tool in your financial strategy.
At Imperial Lifestyle Management, we evaluate your entire financial picture — not just your tax filings — to determine whether this structure aligns with your long-term goals.
Where Imperial Lifestyle Management Comes In
We’re not accountants. We’re your personal CFO team — experts in financial planning, wealth strategy, and risk management, exclusively for physicians. With over 15 years supporting Canada’s medical professionals, we offer deep insight into how to structure your financial world for growth and freedom.
Whether you’re early in your career or managing significant retained earnings, our advisors help you explore the benefits of a holding company in the context of your overall plan — not just the tax implications.
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