If you’re a Registered Psychotherapist in Ontario, you might be wondering: “Should I incorporate my practice?” Many therapists assume it’s just like starting any other business corporation—but it’s NOT.
Unlike a standard Ontario corporation, a Psychotherapy Professional Corporation (PPC) must meet strict College of Registered Psychotherapists of Ontario (CRPO) requirements. Failing to comply could mean delays, additional costs, or even rejection of your incorporation application.
So, what makes a Psychotherapy Professional Corporation different from a regular business? And how do you incorporate the RIGHT way? Let’s break it all down.
👩⚕️ Psychotherapy Professional Corporation vs. Regular Corporation: What’s the Difference?
1️⃣ You MUST Be a Registered Psychotherapist to Own a PPC
A regular corporation can be owned by anyone, including multiple shareholders who are not involved in the business. But a Psychotherapy Professional Corporation?
✅ Only registered psychotherapists can own shares.
✅ Your corporation’s name must comply with CRPO regulations (more on that below).
✅ You cannot bring in outside investors who are not licensed psychotherapists.
📢 PRO TIP: If you plan on expanding your practice and bringing in other shareholders, make sure they are also registered psychotherapists.
2️⃣ Your Corporation’s Name MUST Follow CRPO Rules
Unlike regular businesses that can choose any unique name, a Psychotherapy Professional Corporation must follow strict naming rules set by the CRPO.
📌 Your name must include:
✔️ The name must include the psychotherapist’s surname as it appears on the CRPO register.
✔️ The words "Professional Corporation" at the end.
❌ You CANNOT use:
🚫 A brand name (e.g., “Internal Healing Therapy Inc.” won’t be accepted).
🚫 Creative or descriptive words that don’t match your registered name.
✅ Example of an acceptable name:👉 “John Smith Psychotherapy Professional Corporation”
📢 PRO TIP: If you operate under a clinic name, you can register it as a business name (operating name) under your corporation, but the legal name of the corporation MUST follow CRPO’s guidelines.
3️⃣ You Must Get CRPO Approval Before Incorporating
Unlike a regular business that can incorporate right away, a psychotherapist must first obtain approval from the CRPO.
🔹 Step 1: Submit an Application for a Certificate of Authorization to the CRPO.
🔹 Step 2: Once approved, incorporate your business with the Ontario government.
🔹 Step 3: Provide proof of incorporation back to CRPO to receive final approval to operate.
📢 PRO TIP: Skipping CRPO approval can delay your ability to practice under your corporation, leading to lost income.
4️⃣ Special Restrictions Apply to Advertising & Business Activities
Unlike other corporations that can offer multiple business services, a Psychotherapy Professional Corporation can ONLY offer psychotherapy-related services.
📌 This means:
❌ You CANNOT use your corporation to provide other healthcare services (e.g., massage therapy, physiotherapy, or coaching).
❌ You CANNOT engage in non-psychotherapy business activities under the same corporation.
✅ However, you CAN:
✔️ Own multiple corporations for different types of businesses.
✔️ Register a separate business name under your corporation for branding purposes.
📢 PRO TIP: If you offer additional services outside of psychotherapy, you may need a second corporation or business structure.
💰 Benefits of Incorporating Your Psychotherapy Practice
While there are extra steps involved, incorporating your practice can provide major advantages:
✅ Limited Liability Protection – Keeps your personal assets separate from business debts.
✅ Tax Savings – Access lower corporate tax rates and income-splitting strategies.
✅ Professional Credibility – Many clients see incorporated therapists as more established.
✅ Business Growth – Incorporation allows you to scale your practice and bring on other psychotherapists.
📢 PRO TIP: If your practice is earning over $80,000 per year, incorporation could result in significant tax savings.
📢 Ready to Incorporate? Get Professional Help & Avoid Costly Mistakes!
Incorporating a Psychotherapy Professional Corporation is NOT the same as starting a regular business. Missing CRPO requirements can lead to rejected applications, unnecessary delays, and lost income.
Before you incorporate, get legal guidance to ensure your corporation is set up correctly from the start.
📅 Book a business incorporation consultation today: Schedule Your Consultation Now
💡 A little legal planning today can save you thousands in the future. Let’s get your psychotherapy practice set up the RIGHT way!