Introduction

After working with professionals for over 20 years I have come to the conclusion that they all fall into two basic categories: those who are just in business and those who are business people. I can assure you that most professionals are just in business. If you are sitting reading this and having trouble differentiating between the two, it reinforces my conclusion that the majority of professionals are in business by default.

There you are, on graduation day, ready to start practicing your craft. Regardless of which faculty you were in, your training ensured that you could competently earn a living dealing with the public. In most cases the first step wasn't to go out and incorporate a business, but rather to begin building your practice. Over time you may have been introduced to the idea of incorporating your practice, and regardless of whether you did or not, you were making money by practicing what you were taught. You were, in fact, running a business.

If you don't incorporate you are deemed a "sole proprietor." You have employees, loans, taxes, and responsibilities, and your life centers on treating patients.

If you do incorporate your business, does this make you a businessperson? Probably not. Why? Because you probably will continue to focus on earning money through practicing your profession, treating patients, and (usually for tax purposes) just happen to be incorporated.

When someone asks you what you do for a living, how do you respond? Do you tell them, "I'm a dentist," "I'm a physician"? Or do you tell them that you are a businessperson who happens to be a dentist or physician?

Think about the most financially successful people you know. Chances are they are business people. The reason is simple. Our free enterprise system is designed to encourage economic growth. The driver behind economic growth is business, incorporated businesses.

Business people have 'to think like business people in order to survive. Professionals don't have to think like business people in order to survive; however, they do have to act like business people in order to maximize their efforts and income.

This book is intended to help you understand the benefits and applications of an incorporated business.

A professional corporation is an incorporated business. Understanding how to use it properly and making it work for you is the key.

When you work for a large company you have a big safety net. Most large corporations have management teams, personnel departments, payroll departments, lawyers, accountants, purchasing agents, computer technicians and boards of directors. They have employee benefits including pensions, medical coverage, dental plans, life insurance, and disability insurance and maybe stock option plans, share purchase plans, and employee profit-sharing plans.

As a professional you've decided to go it alone, forgoing the corporate safety net. As an incorporated professional you've assumed the responsibility of practitioner and business owner. In order to ensure success during your business lifetime you should strive to maximize your corporate ability by retaining the best possible advisors to act as your corporate departments. Never assume that everyone you're working with now or in the future knows everything that can help you.

The various sections of this book are designed to make you aware of things you may be able to do to save you money, maximize your financial opportunities, and ensure a financially secure and safe retirement. Being informed about the choices open to you enables you to ask the right questions of your advisors. Regardless of the profession, whether it be law, banking, insurance, or investment management, there are exceptional practitioners, and merely good ones. You deserve to work with the exceptional ones. This book will give you the power to know the difference.