SME Accounting
Accountant for professionals in Quebec: Doctors, dentists, and lawyers (2026)
July 23, 2026
At a Glance. In Quebec, doctors, dentists, and lawyers may practice through a corporation, within the framework established by their professional association. When structured properly, incorporation creates a real tax deferral: income retained in the corporation of an incorporated professional without employees is taxed at approximately 20.5%, compared to a personal marginal tax rate that can reach about 53%. In terms of fees, an incorporated professional generally pays between $2,000 and $4,500 per year for full accounting services, which falls within the $500 to $6,000 range indicated by the Bankeo Fee Barometer. All amounts are in Canadian dollars.
Healthcare and legal professionals don’t manage their finances the same way a retail business does. Your income comes through the RAMQ or trust accounts, your professional association regulates how you can incorporate, and your tax system is different from that of other entrepreneurs. This 2026 guide covers the three key accounting areas for doctors, dentists, and lawyers in Quebec: professional incorporation, your corporation’s income and sales taxes, and choosing an accountant who truly understands your profession, with fees based on the Bankeo Fee Barometer.
These three professions share one thing in common, regulation by a professional association, but their accounting realities are very different. Doctors receive the bulk of their fees from the RAMQ: their accounting primarily involves reconciling invoices, structuring their compensation, and managing their practice, with few private accounts receivable and no taxes to collect on medical services. Dentists run a true SME: heavy equipment to depreciate, hygienists and assistants to pay each month, and source deductions to remit to the CRA and Revenu Québec. Lawyers, on the other hand, face a unique constraint: trust accounts, strictly regulated by the Quebec Bar Association, which require separate bookkeeping and rigorous reconciliations, in addition to taxes to be collected on their fees.
| Occupation | Practice as a Partnership | Accounting Specifics | GST/QST |
|---|---|---|---|
| Doctors | Licensed by the Collège des médecins du Québec (registration with the professional association) | Reconciliation of RAMQ billing; few private clients; Quebec’s reduced tax rate often goes unclaimed due to a lack of employees | Exempt medical fees: no revenue to collect, no ITC/ITR on expenses |
| Dentists | Licensed by the Ordre des dentistes du Québec | Equipment to depreciate, clinic staff, monthly payroll and source deductions, often more than 5,500 paid hours | Most medical services are exempt; certain purely cosmetic procedures are taxable |
| Lawyers | Licensed by the Quebec Bar Association (corporation or SENCRL) | Regulated trust accounts, regular reconciliations, tracking work in progress | Taxable legal services: 5% GST + 9.975% QST, recoverable ITC/ITR |
Long reserved for other entrepreneurs, incorporation has been open to professionals since their respective professional bodies authorized it by regulation: the Quebec Bar Association has permitted practice as a corporation since 2004, the College of Physicians since 2007, and the Order of Dentists offers the same framework. There are two legal structures available: the corporation (the most common option, which allows for tax deferral) and the limited liability partnership (SENCRL), which is primarily used by law firms with multiple lawyers.
Requirements vary from one professional association to another, but the basic principles remain the same:
Regarding the incorporation process itself (federal or Quebec charter, articles of incorporation, tax returns), our guide to Steps to Incorporate a Business in Quebec provides a detailed overview of the entire process.
Since 2017, a service company in Quebec must have at least 5,500 paid hours per year to be eligible for the Quebec small business deduction. A sole incorporated professional with no employees does not meet this threshold; their corporation therefore pays the general Quebec tax rate of 11.5% instead of 3.2%, which amounts to approximately 20.5% when combined with the federal tax rate. Tax deferral is often beneficial, but its exact return depends on your situation: have an accountant run the numbers before incorporating your company.
A corporation’s business income is taxed at both the federal and Quebec levels. At the federal level, the small business tax rate is 9% on the first $500,000 of eligible income; above that amount, the general rate of 15% applies. In Quebec, the reduced rate of 3.2% requires meeting the well-known 5,500-hour paid work criterion; without it, the corporation pays the general rate of 11.5%. Here’s how this breaks down for a professional:
| Company Overview (2026) | Federal | Quebec | Combined Rate |
|---|---|---|---|
| SME eligible for both reduced rates (clinic with staff, 5,500 hours reached) | 9% | 3.2% | Approximately 12.2% |
| Incorporated professional with no employees (loss of Quebec’s reduced tax rate) | 9% | 11.5% | Approximately 20.5% |
| Income Exceeding the $500,000 Threshold | 15% | 11.5% | Approximately 26.5% |
The key benefit of incorporation is tax deferral: the income you leave in the corporation is taxed at around 20.5% (or 12.2% for a qualifying clinic), whereas your personal marginal tax rate can reach approximately 53% in Quebec. The difference, often more than 30 percentage points, remains invested in the corporation as long as you don’t withdraw the money. Personal income tax is due when you pay yourself a salary or receive dividends, a trade-off we break down in Salary or Dividends for Executives in Quebec. Be aware, however, of the rules regarding split income: since 2018, paying dividends to family members who do not actively participate in the company has been heavily regulated.
In terms of tax obligations, a professional corporation files a T2 return with the CRA and a CO-17 return with Revenu Québec each year, along with financial statements (typically a compilation engagement). In addition, there are tax instalments, and if you pay yourself a salary, monthly source deductions forms, as well as T4 slips and RL-1 forms at the end of the year.
This is the classic blind spot for professionals, and it works both ways:
For a complete overview of the process (registration, collection, filing, and refunds), see our GST/QST Guide for Businesses in Quebec.
Based on actual fees from 1,248 engagements completed through Bankeo (2024-2026), out of more than 15,000 requests received, the Bankeo Fee Barometer estimates the median accounting fee at approximately $3,000 per year, with most engagements ranging from $500 to $6,000. Incorporated professionals fall above this median: a corporation requires T2 and CO-17 returns, financial statements, and, often, compensation planning. Here’s how the professional segment breaks down within this range:
| Professional Profile | Actual Annual Fees | What’s Typically Included |
|---|---|---|
| Unincorporated professional (doctor or lawyer just starting their practice) | $500 to $1,500 | T1 and TP1 Returns with Self-Employed Attachments: Basic Tips |
| Incorporated professional, simple filing (incorporated physician with no employees) | $2,000 to $3,500 | T2 and CO-17, compilation engagement, basic bookkeeping, taxes as applicable |
| Business with a team and a business plan (dental clinic, law firm) | $3,500 to $6,000 | Comprehensive bookkeeping, payroll and source deductions, trusts, salary-dividend planning |
What drives up the cost: trust accounting (Bar Association requirements), payroll for a clinic staff, the volume of transactions, and customized tax planning. What keeps costs down: up-to-date bookkeeping, organized supporting documents, and accounting software seamlessly integrated with your accounts. Detailed price ranges by sector and service are published at Bankeo Fee Barometer, and you can browse the Vetted accountants in the Bankeo network to compare profiles.
An excellent general accountant may not be the right choice for an incorporated physician or a lawyer’s office: RAMQ billing, the 5,500-hour threshold, trust accounting, or your professional association’s ownership rules cannot be handled without specialized knowledge. This is exactly the problem that Bankeo’s matching service solves. You describe your situation (profession, incorporated or not, team size, planning needs), and we search our network of over 1,500 registered accounting firms to find one that already works with professionals like you, including CPAs who are members of the Ordre des CPA du Québec for engagements that require it. Matching is often done within 48 hours; the service is free and non-binding, and we’re always there to support you: if the accountant no longer meets your needs after six months, we’ll find you another one at no cost. The 4.7/5 rating based on over 180 Google reviews reflects this approach.
Bankeo connects you for free with vetted accountants from its network of over 1,500 partners, many of whom already work with doctors, dentists, and incorporated lawyers in Quebec. The service is free, with no obligation, and we’re always here to support you.
Find my accountantOften yes, but not automatically. The main advantage is the tax deferral on income retained in the corporation; this benefit disappears if you spend everything you earn. An incorporated physician with no employees also loses the reduced Quebec tax rate (5,500-hour threshold) and pays approximately 20.5% in combined taxes through the corporation, plus recurring accounting and legal fees. The right answer depends on your ability to save: have an accountant run the numbers for you before you proceed.
Approximately 12.2% combined (9% federal, 3.2% Quebec) on the first $500,000 if the corporation qualifies for both reduced rates, which requires at least 5,500 paid hours per year in Quebec. An incorporated professional with no employees, on the other hand, pays approximately 20.5% (9% federal, 11.5% Quebec). Above the $500,000 threshold, the combined rate increases to approximately 26.5%.
Yes. Legal services are taxable: as soon as your taxable fees exceed $30,000 over four consecutive calendar quarters, you must register for GST/QST, charge 5% GST and 9.975% QST, and then file your returns with Revenu Québec. In return, you can recover the taxes paid on your practice expenses through the ITC and ITR credits.
Typically between $2,000 and $3,500 per year for a simple case (T2, CO-17, compilation engagement, basic bookkeeping), and from $3,500 to $6,000 for a firm with a staff, payroll, and planning needs, such as a dental clinic or law firm. These ranges are part of the Bankeo Fee Barometer, based on actual fees from 1,248 engagements completed through Bankeo (2024-2026), from over 15,000 requests received, with a median of around $3,000 per year.
A corporation is a separate legal entity: it pays corporate income tax and allows for the deferral of tax on income retained within the corporation. A SENCRL (limited liability general partnership) is a partnership: income is taxed directly at the partners’ level, but each partner is protected from liability arising from the professional misconduct of the other partners. In both cases, you remain personally liable for your own professional actions, and professional liability insurance remains mandatory.
Take a few minutes to describe your situation: profession, whether incorporated or not, RAMQ billing or trust account, team size, and planning needs. Bankeo then searches its network of over 1,500 registered accounting firms to find the one whose practice best matches your situation, often within 48 hours. The service is free and non-binding for you, and we’re always here to support you: if the match no longer works out, we’ll find you another accountant at no cost.
General information provided for informational purposes only, based on known 2026 tax rules. It is not a substitute for the advice of a Chartered Professional Accountant (CPA): always consult a professional regarding your specific situation.
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