Professional incorporation · CPA
A CPA Corporation is a BC corporation authorised by CPABC to provide accounting services. The legal work is part standard BC incorporation, part CPABC authorisation — and the CPABC piece is where most of the time goes. We handle both.
The structure
CPABC sets the structural rules for CPA corporations. The three that matter most at incorporation:
Share ownership. The CPA holds all voting shares.
Corporate name. CPABC requires the name to identify the CPA and indicate it is a professional corporation. The name has to be cleared through both BC Registries and CPABC before the corporation can be authorised to provide accounting services.
Scope of services. The corporation can only provide accounting services and services incidental to them. Other ventures (consulting unrelated to CPA work, real estate investments, unrelated businesses) belong in separate corporate entities.
The process
We confirm the proposed corporate name with CPABC before filing the BC company. This avoids the case where the BC name is cleared but CPABC declines to authorise it as a CPA Corporation.
Standard BC incorporation: articles, share structure (typically common voting plus one or more classes of non-voting if family members are participating), founding resolutions, minute book.
Application form, supporting documents (corporate documents, minute book extracts, declarations from the CPA), application fee. CPABC reviews; some files require follow-up.
On authorisation, CPABC adds the corporation to its register of authorised CPA Corporations. The corporation can now bill clients for accounting services through the corporate entity.
Update banking, accounting, payroll, and any client engagement letters to reflect the corporate practice. Insurance and CPABC member records are updated to reflect the corporate billing arrangement.
Frequently asked
A CPA Corporation is a BC corporation authorised by the Chartered Professional Accountants of British Columbia (CPABC) to provide accounting services through the corporation. Like other professional corporations, it is a regular BC company with regulator-specific layers added: only CPAs can hold voting shares, the corporate name has to follow CPABC rules, the corporation can only provide CPA services and services incidental to them, and the corporation must report annually to CPABC.
Tax planning is a primary driver: earnings retained in the corporation are taxed at corporate rates, deferring tax on income the CPA does not need for personal living costs. Other drivers include retirement planning, limited income-splitting where the federal Tax on Split Income (TOSI) rules permit it, and limited liability — the corporation is a separate legal person, which can shield personal assets from business obligations (subject to the limits CPABC imposes on professional liability for the practitioner personally). The math is best confirmed with the CPA's own tax planning.
The CPA must hold all voting shares.
CPABC requires the corporate name to identify the CPA and indicate it is a professional accounting corporation. Common forms include "Jane Smith CPA Inc." or "Smith Professional Accounting Corporation". Trade names different from the legal corporate name can be registered separately if used for marketing purposes.
The BC company can be filed in 1 to 3 business days. CPABC authorisation typically takes 2 to 6 weeks after the application is submitted. The CPA cannot bill clients through the corporation until CPABC authorisation is in place. We co-ordinate timing — the BC company is usually filed first (with a corporate name pre-cleared with CPABC), the CPABC application is submitted, and the practice is transitioned over once authorisation is granted.
Annual confirmation to CPABC that the corporation continues to meet the rules. Annual report to BC Registries to keep the corporation in good standing. CRA tax filings (corporate income tax, GST if registered, payroll if employees). Minute book maintenance — board resolutions for major decisions, share certificate updates, share register and director register kept current. We can act as the registered and records office to keep the minute book up to date.
Yes, multiple CPAs can be shareholders of a single CPA Corporation. In practice, many CPA firms structure each partner with an individual professional corporation that, in turn, holds an interest in the firm — this isolates each partner's tax planning. A single multi-CPA corporation is also possible, but requires careful drafting of the shareholder agreement to handle profit-sharing, decision-making, and what happens when a CPA leaves.
Tell us your name (for the CPABC pre-clearance), whether family members will hold non-voting shares, and your timeline. We'll come back with a quote covering the BC company, the CPABC authorisation, and the minute book.