Group Case: Parsa Dental Clinic In early $2020,$ Parsa, a den$/$st$,$ and his wife, Asia, a digital marke$/$ng specialist, relocated to Vancouver, BC$.$ Shortly aCer the move, Asia, a digital marke$/$ng specialist, obtained a full$-/$me job with a private company at Burnaby. Parsa, a den$/$st$,$ obtained his den$/$stry degree from the university of his home country several years ago. He has recently spent a lot of $/$me studying for the reciprocity examina$/$on administered by the Canadian Na$/$onal Dental Examining Board $($NDEB$),$ enabling him to prac$/$ce den$/$stry in Canada. Last summer, Parsa passed all exams. He has now approached you as a financial advisor and seek advice on establishing his dental prac$/$ce$.$ It is October $1$st$,2023.$ You are mee$/$ng with Parsa and Asia to discuss their plans. Parsa: Thank you for your assistance. Now that I am licensed to prac$/$ce in Canada, BC province, we aim to establish my dental prac$/$ce as soon as possible, hopefully by the beginning of $2024.$ Asia: I plan to assist Parsa with the administra$/$ve side, leveraging my prior experience. My income as a digital marketer covers our basic living expenses, excluding future mortgage payments. However, we intend to buy a house in North Vancouver, taking on a substan$/$al mortgage. Parsa$$s BC dental cer$/$fica$/$on allows us a $$1$ million loan for any type of house. Our goal is to pay it off quickly to save for our re$/$rement$.$ We turned $45$ this year, and both plans to re$/$re by $65,$ promo$/$ng our desire to start planning and saving promptly. Parsa: A colleague connected us with an agent in Vancouver helping re$/$ring den$/$sts sell their prac$/$ces$.$ The agent has already found a suitable prac$/$ce$,$ Dr$.$ Daniel Paredes$$ prac$/$ce located in North Vancouver and he currently runs it$.$ The agent has given us two years of financial statements for Dr$.$ Paredes$$s prac$/$ce$,$ as well as highlights of the business $($Exhibits I$).$ We have some savings set aside, and the agent has indicated that Dr$.$ Paredes is willing to offer $$800,000$ purchase price. I made some notes from our discussion with the agent $($Exhibit II$)$ and some notes from my personal research $($Exhibit III$).$ Asia: I prefer Parsa set up his own prac$/$ce and build up his client base. Parsa already spoke with one of the local den$/$sts in North Vancouver who helped mentor him through the NDEB exams, and he gave us some es$/$mates of how much it would cost to start our own prac$/$ce $($Exhibit IV$).$ Alterna$/$vely$,$ Parsa could work as a dental associate in other clinics. I searched and found that average annul salary for a dental associate is $$100,000.$ Group Case: Parsa Dental Clinic Parsa: I have a specializa$/$on in implant and surgery den$/$stry$,$ an area of increasing pa$/$ent demand. If I have my own prac$/$ce$,$ I would like to offer these services to my pa$/$ents$.$ My es$/$ma$/$on is $60\%$ of gross margin on implant and surgery services. Asia: I$$ve heard that professionals these days incorporate to take advantage of lower tax rates. Average tax rate for small corpora$/$on is about $10\%$ in BC$.$ How should we set up the prac$0$ce to generate the best tax savings? What are other benefits of incorpora$0$ng the business? Parsa: The agent wants us to decide about Dr$.$ Paredes$$s prac$/$ce by month$-$end. Can you please help us understand our op$0$ons, and provide a recommenda$0$on$?$ What are advantageous or disadvantageous of each op$0$on$?$ If we start our own prac$0$ce$,$ could you please tell us what would be our sales and pa$0$ents$$ numbers at the Break even point? Could you prepare a cash flow projec$0$on for both scenarios over the next $5$ years? Asia: Our plan is to be re$/$red in $25$ years. We would like to pay off the clinic and house mortgages by then, ensuring financial security for at least $20$ more years with an annual expense of $$70,000.$ If we plan to sell the prac$0$ce for $$1$ million in $20$ years, what should be our re$0$rement saving? Please let us know if there are any extra common business ideas that you believe they could be beneficial for us and our new business.Group Case: Parsa Dental Clinic In early $2020,$ Parsa, a den$/$st$,$ and his wife, Asia, a digital marke$/$ng specialist, relocated to Vancouver, BC$.$ Shortly aCer the move, Asia, a digital marke$/$ng specialist, obtained a full$-/$me job with a private company at Burnaby. Parsa, a den$/$st$,$ obtained his den$/$stry degree from the university of his home country several years ago. He has recently spent a lot of $/$me studying for the reciprocity examina$/$on administered by the Canadian Na$/$onal Dental Examining Board $($NDEB$),$ enabling him to prac$/$ce den$/$stry in Canada. Last summer, Parsa passed all exams. He has now approached you as a financial advisor and seek advice on establishing his dental prac$/$ce$.$ It is October $1$st$,2023.$ You are mee$/$ng with Parsa and Asia to discuss their plans. Parsa: Thank you for your assistance. Now that I am licensed to prac$/$ce in Canada, BC province, we aim to establish my dental prac$/$ce as soon as possible, hopefully by the beginning of $2024.$ Asia: I plan to assist Parsa with the administra$/$ve side, leveraging my