Engineers and the Professional Corporation

Proper financial planning is the keystone to professional growth and development. The professional corporation is used successfully by professionals in many fields and deserves serious consideration by professional engineers. This article discusses the advantages which may be obtained by the engineer who maintains his or her own professional corporation. These advantages include portable, qualified retirement plans which provide greater benefits than existing Keogh plans and overcome the long term vesting problems associated with employer plans. The professional corporation also can provide the engineer with other tax free benefits including group life insurance, medical reimbursement and wage continuation plans. Financial planning advantages also arise from lower corporation income tax, low corporate tax on investment income, and loans from the corporation.