Introduction
Annual fees paid to the Law Society of Ontario (LSO) — the licensing fee, the mandatory professional liability levy (LawPRO premium), and any other required payments — are among the most straightforward deductible expenses for lawyers in Canada. Yet questions about how to deduct them, whether they are deducted personally or through a professional corporation, and what documentation is required come up regularly.
What Are LSO Annual Fees?
Ontario lawyers who are licensing holders in good standing with the Law Society of Ontario pay an annual licensing fee that funds the LSO's regulatory operations. The 2026 fee varies by licensing class (barrister and solicitor, paralegal, etc.) and whether the lawyer is a new call. Lawyers also pay the LawPRO professional liability insurance premium through the LSO's annual assessment.
These fees are a condition of licensed practice in Ontario — they are not optional.
Deductibility: The General Rule
Professional dues and annual fees paid to a professional body that are required to maintain the right to practise a profession are deductible. This is explicitly supported under section 8(1)(i)(i) of the Income Tax Act for employees, and under section 18(1)(a) for self-employed individuals and corporations.
For lawyers, LSO annual fees — licensing fee and LawPRO premium — fall squarely within this category. They are required by the regulatory body as a condition of practice and are directly related to the earning of professional income.
Deducting Through a Professional Corporation vs. Personally
For an incorporated lawyer, the professional corporation pays the LSO fees and deducts them as a corporate business expense. The corporation's T2 reflects these costs alongside other professional expenses.
For an unincorporated lawyer (partnership or sole practitioner), the fees are deducted on Form T2125 of the T1 personal return, or allocated to the partner as part of the partnership's expense calculation.
For an employed lawyer who pays LSO fees personally — without reimbursement from the employer — the fees are deductible as employment expenses under section 8(1)(i), requiring a T2200 from the employer confirming that the fees were a condition of employment.
Other Deductible Professional Fees for Lawyers
Beyond the LSO annual fee and LawPRO, lawyers regularly pay other professional fees and dues that are deductible:
The Canadian Bar Association (CBA): Annual membership dues for the CBA are deductible professional dues.
Specialty bar associations and section memberships: Fees for membership in practice-area bar associations (criminal defence bar, family law bar, commercial litigation bar, etc.) are deductible as professional dues.
Continuing professional development (CPD): LSO-required continuing professional development courses — including the annual 12-hour CPD obligation — are deductible when paid through the corporation or personally, as discussed in the context of professional education in earlier articles.
Bar admission course fees: For new lawyers completing the Law Society's licensing process, the licensing examination and articling program fees are professional expenses incurred in connection with becoming licensed — generally deductible in the year paid.
Documentation
The LSO's annual invoicing provides the documentation needed to support the deduction. These invoices should be retained in the corporation's or individual's records. For lawyers who pay through pre-authorized payment or credit card, the payment record and the LSO account statement together provide complete documentation.
When to Speak With a CPA
For most lawyers, LSO and bar dues are a straightforward annual deduction. The conversation becomes more nuanced for lawyers who are transitioning between employment and self-employment, setting up a professional corporation for the first time, or who pay significant additional professional fees across multiple bar associations.