PROFESSION — MEDICAL, DENTAL & ALLIED HEALTH

For practitioners whose practice is also the family’s most consequential asset.

Professional corporations, retained earnings, and the discipline that turns clinical years into a balance sheet equal to the work that built it.
CENTREThe professional corporation, and the capital it produces.
HORIZONFrom establishment through wind-down or sale.
COMPOUNDSRetained earnings, the corporate-personal boundary, succession.
FOR PRACTITIONERS WHOSEHours are spent on patients; the architecture is rarely revisited.
ON THE PROFESSIONAL CORPORATION

The vehicle most practitioners hold, and rarely have time to refine.

The professional corporation is, for most practitioners, the central structural decision of the career. Inside it sits years of retained earnings, a deferral that is itself a kind of compounding asset, and a tax position that requires the same patience and design as the practice itself.

What rarely accompanies it is the architecture beneath. The corporate cash that should have been moved to a holding company years earlier. The investment policy written for the corporation as a long-horizon balance sheet rather than a residual account. The estate freeze that should have been put in place while the family was younger and the practice was earlier in its arc. The buy-sell, where there are partners, drafted at the start and never refreshed.

The work is to compose that architecture deliberately, alongside the family’s existing accountant and corporate counsel, so the practice supports a balance sheet equal to the years that have built it.

WHERE WE ARE MOST USEFUL

Four points at which the architecture compounds.

Each, attended to in time, is materially worth more than a year of clinical revenue.

I

The corporate-personal boundary, drawn deliberately.

What is held in the professional corporation, what in the holding company, what personally, what in trust. Decisions made in the first years determine creditor exposure, the deductibility of interest, and the optionality available at sale or wind-down. Restructuring later is rarely impossible, only expensive.

II

Retained earnings, treated as a long-horizon balance sheet.

The capital deferred inside the corporation deserves the same investment policy a private client portfolio receives. Currency, custody, fixed-income ladder, alternative allocation. Composed against the family’s long-horizon tax position, not run as a residual operating account on the practice’s books.

III

The estate, sequenced ahead of the deemed disposition.

The freeze on the holdco. The secondary will. The trust for the rising generation. Permanent insurance held corporately to fund the s. 70 deemed disposition and protect the practice’s capital from being drawn down to pay tax. Each of these compounds when composed early; each becomes restrictive when composed late.

IV

Wind-down or sale, sequenced years before required.

Whether the practice will be sold, transitioned to a partner, or wound down across the final years of clinical work, the structural answer differs — and so does the optimal calendar. Composed two to five years in advance, the wind-down is materially more efficient than the sequence most practitioners run by default.

HOW AN ENGAGEMENT IS STRUCTURED

Year one for the architecture. Then a continuing rhythm.

Existing CPA and corporate counsel continue under their own mandates; we hold the architecture above and convene the table when consequential decisions arise. Annual cycle aligned with the practice’s fiscal year, quarterly counsel against tax decisions, proactive coordination ahead of every wind-down or transition decision.

I
STAGE I · ARCHITECTURE
First year. Documented review, circulated to existing counsel before any action.
II
STAGE II · ALIGNMENT
Second year. Sequenced corporate, tax, estate, and insurance work with each existing advisor.
III
STAGE III · CONTINUITY
Continuing. Quarterly counsel against the practice’s fiscal year and the generational horizon.
REPRESENTATIVE OBSERVATION

The practice was the work. The corporation around it had been left to compound on its own terms for two decades. The architectural review did not change the practice. It changed everything about how the years inside it would compound from this point forward.

From an engagement summarySpecialist physician, mid-career, southwestern Ontario
ADJACENT AUDIENCES

Eleven adjacent audiences.

Most principals belong to more than one. The architecture is composed for the family in front of us; the descriptions below are how families most often arrive.

BY CHAPTER · I

The Founder’s Chapter

The enterprise, the estate, and the architecture, coordinated in concert.

Read
BY CHAPTER · II

The Liquidity Event

Approaching, mid-sale, or year one beyond the exit.

Read
BY CHAPTER · III

The Stewardship Chapter

Families two and three generations into the enterprise and the estate.

Read
BY CHAPTER · IV

The Transition

Widowhood, divorce, inheritance, or the passage to the next generation.

Read
BY PROFESSION · I

Business Owners & Founders

The founder whose balance sheet lives inside the operating company.

Read
BY PROFESSION · II

Real Estate Developers & Principals

Entity-dense portfolios, refinancing cycles, and the passage of the book.

Read
BY PROFESSION · IV

Legal, Accounting & Finance

Senior professionals whose own architecture is the last to which they have time to attend.

Read
BY PROFESSION · V

Executives & Senior Corporate Leaders

Concentrated equity, deferred compensation, and the sequencing each requires.

Read
BY PROFESSION · VI

Technology Founders & Venture Principals

Pre- and post-exit founders, operators, and fund principals.

Read
BY CONTEXT · I

Cross-Border Families — Canada & U.S.

Dual residency, dual citizenship, U.S.-situs assets, and the treaty work.

Read
BY CONTEXT · II

Women Principals & Female Heads of Household

Founders, executives, widows, and inheritors, engaged on terms of their own choosing.

Read
BY CONTEXT · III

Philanthropists & Family Foundations

Families for whom philanthropy has moved from line item to operating discipline.

Read

Compose around the practice.

The architecture beneath a professional corporation is more efficient when composed early than when added under pressure. Inquiries are read in confidence and answered within one business day.

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