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Can I Make $300K Cad As An Oral Surgeon In Private Practice?


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You'll be in the top 1% of earners in Canada most likely but if you want to be in the top 0.1%, you better start thinking outside of any medical career.....

300-350k as an Oral surgeon with my Practice is just okay for me..be it top 1percent or 20percent
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  • 2 weeks later...

According to stat canada, the top 1% of income salary is 191,100$. If you establish yourself a good clinic after a few years out of dental school you should be making that.

 

Here is the source:

https://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-014-x/99-014-x2011003_2-eng.cfm 

 

Most dentists/specialists incorporate and write off their paycheques to family members to save taxes (believe it or not). So whatever revenue Canada says for the average or top 1% isn't entirely accurate. So if a dentist makes 300k after paying staff, they would pay 150k to themselves and another 150k to their wife (just an example). So on paper, it shows they are making 150k, but actually that person is making 300k. Believe it or not, nearly every dentist does this to avoid paying hefty taxes. This is what I was told by a few of my classmates at my school.

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Most dentists/specialists incorporate and write off their paycheques to family members to save taxes (believe it or not). So whatever revenue Canada says for the average or top 1% isn't entirely accurate. So if a dentist makes 300k after paying staff, they would pay 150k to themselves and another 150k to their wife (just an example). So on paper, it shows they are making 150k, but actually that person is making 300k. Believe it or not, nearly every dentist does this to avoid paying hefty taxes. This is what I was told by a few of my classmates at my school.

 

I bet you so many people do that....it pisses me off in a way but that's because i'm not paying taxes myself...

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Most dentists/specialists incorporate and write off their paycheques to family members to save taxes (believe it or not). So whatever revenue Canada says for the average or top 1% isn't entirely accurate. So if a dentist makes 300k after paying staff, they would pay 150k to themselves and another 150k to their wife (just an example). So on paper, it shows they are making 150k, but actually that person is making 300k. Believe it or not, nearly every dentist does this to avoid paying hefty taxes. This is what I was told by a few of my classmates at my school.

 

But would this only apply to owners?

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But would this only apply to owners?

 

I'm not sure, but probably not since you do not actually own a business as an associate. Plus unless you are an owner, you probably will not be making enough money to need to incorporate and split the income between a family member.

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As far as professional corporation, there are recent talks from the fed to scrap those corp to avoid paying tax, i don't know what Justin is thinking of doing, but small business tax exemption from multiple professional or technical corp is gone.  Before one can own multiple independent corp to entitle small business tax exemption at 15.5% rather than 32% (Don't quote me) for the first 500k profit.  So technically you can own 10 corps each corp allow 500k to pay only 15.5 tax, however, as of this year all 10 corps will be lump into 1, because it is the same owner, so you will only get the first 500k total at 15.5%.

 

As for salary to spouse and kids, they have to do actual work and be paid at market value, ie. if an office manager is pay at $25 an hour within your area, you can't pay your spouse at $35, or else you have some explaining to the CRA.

 

For student, don't think too far ahead of yourself.  these things change depend on who is in office...  just focus on passing and getting it done.  Good luck.

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I'm not sure on the intricacies of dental professional corporations, but for medicine professional corporations in Ontario your spouse and parents can be shareholders and receive dividends (exactly who can receive dividends varies by province).  I would guess that it's similar for dental corps, but I don't know for sure.

 

Rather than paying your spouse an hourly rate and needing to document that there was work done, it's much easier to give them dividends.

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This. You probably won't have time to enjoy the money anyways.

 

I don't agree. There are many oral surgeons that make tons of money, work 3-4 days a week and party like no tomorrow. There's an oral surgeon that is a partial owner for one of the Las Vegas Casinos and he's a UofT grad. 

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I'm not sure on the intricacies of dental professional corporations, but for medicine professional corporations in Ontario your spouse and parents can be shareholders and receive dividends (exactly who can receive dividends varies by province).  I would guess that it's similar for dental corps, but I don't know for sure.

 

Rather than paying your spouse an hourly rate and needing to document that there was work done, it's much easier to give them dividends.

 

Dividend from a private corporation is tax within the corp prior to pay out, thus if you have earned more than 500k within the corp during a fiscal year any amount above that would be tax at much higher rate prior to dividend pay out, thus, there is advantage to payout as salary as it is an expense, and tax will be deduct from the payee not the corp and to lower the corp profit to get it below the 500k.

 

It is true it is much easier to do dividend payout if your spouse doesn't need to generate RRSP contribution room etc. 

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The dental surgeon in my city works 43 hours a week, usually 7-4 on weekdays (excluding friday which is 7-2) and weekends off. It's a full time job none the less...the more flexible you are, the more patients you'll get. If you don't want a hard work week then become a youtuber... 

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The dental surgeon in my city works 43 hours a week, usually 7-4 on weekdays (excluding friday which is 7-2) and weekends off. It's a full time job none the less...the more flexible you are, the more patients you'll get. If you don't want a hard work week then become a youtuber... 

 

what city do u live in if its not a problem for you to share such information? Then 43 hours a week is alot for a dental surgeon honnestly..

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