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Incorporated medical practice available in all provinces. Enables income splitting, tax deferral, and enhanced retirement planning through a T2 corporate return.

Unincorporated practice. Business income reported on your personal T1 return via Form T2125. Simpler structure but no corporate tax deferral.

Two or more physicians sharing a practice. Each partner's share of income flows through to their personal T1 via a T5013 partnership information return.

Salaried physician employed by a hospital or clinic. Employment expense deductions are very limited and require a signed T2200 Declaration of Conditions of Employment from your employer.

Self-employed with no separate business entity. Business income reported on Schedule C of your personal federal tax return.

LLC with one owner. Taxed identically to a sole proprietor by default — income flows through to Schedule C on your personal return.

Incorporated practice. You pay yourself a reasonable salary; profits above your salary avoid self-employment tax (15.3%). Files Form 1120-S.

An LLC that has elected S-Corp tax treatment (Form 2553). Same federal tax benefits as an S-Corp with LLC liability protection.

Two or more physicians sharing a practice. Income allocated to each partner via K-1. Files Form 1065.

Employed by a hospital or clinic. The 2017 Tax Cuts and Jobs Act eliminated most federal deductions for unreimbursed employee expenses. Deductions are very limited — consult a CPA.