Composite case study · Medical
Family physician and MPC incorporation timing
How a Ukrainian family physician in practice year 3 in Calgary set up MPC and cut tax from $92K to $59K — accumulating $107K/year inside the corporation
Composite illustration — not a single real client
This case is built from patterns across 5+ real clients and modified so no individual can be identified. Numbers are ranges, not exact values. The category + framework + decision logic reflect actual practice; specific details are abstracted. Not a recommendation for your situation — book a discovery call for individual setup.
Updated:
Client context (anonymized)
Family physician, MCCQE2 passed, provincial College registration active 18 months. Calgary, Alberta. Practice: shared clinic, FFS + capitation mix. Gross $300K, expenses $50K → net $250K. Married, 1 child, husband engineer ($140K). $20K TFSA, $0 RRSP, $30K cash.
Three key questions
1) Incorporate MPC now (year 2-3) or wait another year? 2) Salary/dividend split? 3) Husband income — separate or integrated?
Framework applied
Q1: Incorporate NOW. Payback < 12 months. Q2: Salary $73,200 (CPP-max) + dividend $50K + $107K stays in MPC. Q3: Husband — separate strategy (TOSI restricts spouse-shareholder for non-actively-engaged spouse).
Quantified result
Sole prop: $92K tax, after-tax $158K. MPC: $59K total tax, living $83K, $107K in MPC growing tax-deferred. Per year, that's $30K+ savings AND $107K corporate accumulation.
20-year projection
Strategy repeats 20 years at 6% growth in MPC: ~$4M accumulated. + RRSP $13K/yr × 20 × 6% = ~$500K. + TFSA $7K/yr × 20 × 6% = ~$270K. Total ~$4.8M in retirement. Plus practice goodwill if sold.
What we did NOT do
Did NOT set up Holdco (premature). Did NOT add IPP (age 32 too early — wait for 40+). Did NOT recommend exempt market securities (not eligible yet — needs 2-year income history via MPC).
Future-action triggers
Year 5-6: introduce Holdco if MPC accumulated > $500K. Year 7-10: setup IPP when age 38-42 + MPC accumulated $200K+. LCGE eligibility if MPC shares qualify QSBS — see /case-studies/founder-lcge-exit-planning.
Key takeaways
- 1.Incorporate MPC year 2-3 of practice when net income > $200K — payback < 12 mo
- 2.Salary to CPP-max ($73,200 in 2026), dividend for residual
- 3.Husband income — separate strategy (TOSI rules)
- 4.IPP at 40+ with $200K+ MPC accumulated
- 5.Holdco at $1M+ MPC (asset protection + investment flexibility)
What if...
If specialist, not family physician (gross $500K+)?
MPC incorporate even earlier (year 1-2). Larger dividend share. IPP discussion sooner — from $200K+ MPC accumulated and age 35+.
If Ontario, not Alberta?
Non-physician spouse-shareholder not allowed (TOSI restriction). Personal income tax higher (~$95K vs $85K AB on $250K). MPC differential even stronger.
If locum, not established practice?
Locum income often via locum-firm employer (T4) — MPC not justified yet. Set up MPC when own practice opens (typically year 3-5 of career).
Let's discuss your specifics?
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