Strategic Accounting & Tax Planning for Canadian Dentists
From dental school graduation to practice acquisition and retirement, Teixeira Accounting Firm Inc. provides sophisticated tax strategies, Dentistry Professional Corporation (DPC) management, and wealth preservation for dental professionals across Toronto.
Your Practice is a High-Overhead Business. We Help You Run It Like One.
Dentistry demands your full clinical attention, but running a successful practice is also running a complex, high-overhead business. Between managing associate fee splits, hygiene production, expensive equipment financing, and strict college compliance, standard accounting simply isn't enough.
At Teixeira Accounting Firm Inc., we understand the specific financial lifecycle of a dentist. Whether you're an associate looking to optimize your taxes, a principal acquiring your first clinic, or a seasoned owner preparing for a lucrative exit, we act as your dedicated financial partners. We make sure every dollar you earn is protected and structured for long-term wealth.
DPC Structuring
Maximize tax deferral and protect your clinical assets.
Dentistry Professional Corporations (DPCs)
Incorporating your dental practice into a Dentistry Professional Corporation (DPC) is often the most significant financial decision you will make in your career. A DPC allows you to access the Small Business Deduction (SBD), significantly lowering your active business income tax rate compared to personal marginal rates, which can exceed 53% in provinces like Ontario and Nova Scotia.
This creates a massive opportunity for tax deferral. By leaving surplus cash inside the corporation, you can invest pre-tax dollars, accelerating your wealth accumulation. However, structuring a DPC requires precision to ensure compliance with both the Canada Revenue Agency (CRA) and your provincial dental college (e.g., RCDSO).
Since the introduction of the Tax on Split Income (TOSI) rules in 2018, paying dividends to family members has become highly restricted. We help you navigate TOSI exemptions, ensuring your corporate structure is compliant while still maximizing family wealth opportunities through reasonable salaries or specialized share structures.
- SBD OptimizationEnsuring your practice fully benefits from the lower corporate tax rate on the first $500,000 of active business income.
- TOSI Compliance & Income SplittingStructuring family members' involvement to legally and effectively share the tax burden.
- Provincial College ComplianceCoordinating with your legal team to ensure your DPC meets all regulatory requirements for share ownership and directors.
Tailored Strategies for Every Career Stage
Your tax strategy must evolve as your career progresses. The financial needs of a new associate are vastly different from those of a multi-clinic owner.
The Associate Dentist
As an associate, your primary concern is establishing your independent contractor status to ensure you are not deemed an employee by the CRA. We help you navigate your associate agreements, optimize your write-offs, and determine the exact right time to incorporate.
- Independent Contractor vs. Employee Analysis
- Maximizing Professional Deductions (CDE, association dues, travel)
- Incorporation Timing & Cost-Benefit Analysis
- Student Debt Repayment vs. Investment Strategies
The Principal / Clinic Owner
Owning a practice introduces complex operational accounting. You are now managing payroll, associate fee splits, hygiene profitability, and equipment financing. We implement cloud-based systems to give you real-time visibility into your clinic's financial health.
- Associate Fee Split Reconciliations
- Hygiene Department Profitability Tracking
- Payroll Management & CRA Remittances
- Overhead Benchmarking against Industry Standards
Practice Acquisition & Sale (LCGE)
Buying or selling a dental practice is a multi-million dollar transaction that requires meticulous tax planning. If you are acquiring a practice, the decision between a share purchase and an asset purchase will dictate your tax write-offs (CCA) and cash flow for years to come. We conduct rigorous financial due diligence to ensure you aren't overpaying.
If you are preparing to sell, our goal is to help you claim the Lifetime Capital Gains Exemption (LCGE). For 2025, the LCGE allows you to shelter over $1.25 million in capital gains from tax upon the sale of Qualified Small Business Corporation (QSBC) shares.
However, qualifying for the LCGE requires your corporation to meet strict asset tests (the 50% and 90% tests) leading up to the sale. We work with you years in advance to "purify" your corporation, moving excess cash and passive investments into a holding company so your DPC qualifies for this massive tax exemption.
M&A Advisory for Dentists
Financial Due Diligence
Verifying patient charts, analyzing EBITDA, and normalizing earnings to determine true practice valuation before you buy.
Asset vs. Share Purchase
Negotiating the tax allocation to balance the buyer's desire for CCA write-offs with the seller's desire for capital gains treatment.
Corporate Purification
Executing Section 85 rollovers and related party transactions to ensure your DPC meets the QSBC tests for the LCGE.
Dental Practice Valuation Calculator
Curious about the current market value of your practice? Adjust the sliders below to see an estimated valuation range based on current Canadian dental M&A multiples.
Practice Metrics
Adjust the sliders to reflect your clinic's current financial performance.
Disclaimer: This is a simplified estimate. True practice valuation requires normalizing EBITDA (adding back owner's compensation, one-time expenses, and non-arm's length transactions). Multiples vary based on location, equipment age, and patient demographics.
Estimated EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization
Estimated Valuation Range
$3,150,000
Based on a 4.5x - 6.0x EBITDA multiple
This tool is for general information only and does not replace professional tax or accounting advice.
Equipment ROI & Wealth Management
Dentistry is a capital-intensive business. We help you optimize your cash flow when purchasing expensive clinical equipment and transition those profits into long-term wealth.
Optimizing Capital Cost Allowance (CCA)
Purchasing a new CBCT scanner, dental chairs, or upgrading your clinic's IT infrastructure requires significant capital. The CRA allows you to deduct the cost of these assets over time through Capital Cost Allowance (CCA). We advise on the optimal timing of these purchases—often right before your corporate year-end—to maximize your immediate tax write-offs through rules like the Available for Use rule and accelerated investment incentives.
We also analyze whether it is more tax-efficient for your specific cash flow situation to buy equipment outright, finance it through a loan, or structure it as an operating lease.
Holding Companies & IPPs
As your practice generates surplus cash, leaving it in your DPC exposes it to creditors and jeopardizes your LCGE eligibility. We establish Holding Companies (Holdcos) to safely extract and invest this cash. We help you navigate the complex passive income rules (which can grind down your SBD if passive income exceeds $50,000).
For high-earning dentists over age 40, we also evaluate the implementation of an Individual Pension Plan (IPP). An IPP allows your corporation to make tax-deductible contributions toward your retirement that far exceed standard RRSP limits, providing a massive corporate tax deduction while securing your future.
Benchmarking & Practice Analytics
Are you overpaying for dental supplies? Is your hygiene department underperforming? We use advanced analytics to compare your practice against national and provincial averages.
Overhead Analysis
We break down your facility costs, clinical supplies, and administrative expenses, identifying precise areas where you are leaking profit compared to top-performing peers.
Hygiene Profitability
Your hygiene department should be a major profit center. We track hourly production, recall effectiveness, and compensation structures to optimize this critical revenue stream.
Associate Production
We provide detailed reporting on associate fee splits versus their material and lab costs, ensuring your compensation agreements remain profitable for the clinic.
Outsourced Back-Office & CFO Services
As your practice grows, managing the financial back-office becomes a full-time job. Our fractional CFO and outsourced accounting services allow you to focus entirely on clinical excellence.
We handle the entire financial lifecycle: from cloud-based bookkeeping (integrating your practice management software like Cleardent or Tracker directly into QuickBooks Online or Xero) to managing complex bi-weekly payroll for your administrative staff, hygienists, and associates.
Our team provides monthly financial dashboards, highlighting key performance indicators (KPIs) and cash flow projections, so you always know the exact financial health of your practice before making major equipment purchases or hiring decisions.
Dental Accounting FAQs
Expert answers to common tax questions for Canadian dentists.
Ready to Optimize Your Dental Practice?
Stop letting outdated accounting hold your practice back. Partner with a dedicated CPA firm that understands the business of dentistry.