Toronto and GTA Lawyers for Incorporating Personal Real Estate Corporations
Real estate professionals in some provinces other than Ontario have had the ability to incorporate a Personal Real Estate Corporation, or a PREC, for some time. However, Ontario real estate agents and brokers only became entitled to these benefits on October 1, 2020, with the passing of the Trust in Real Estate Services Act. For the first time in Ontario, real estate professionals can now operate their business as a corporation instead of as self-employed individuals, providing many new tax-savings opportunities.
While a professional accountant is the most qualified person to provide specific tax savings and deferral advice, the business and real estate lawyers at GLG LLP are exceedingly experienced in the incorporation of businesses. We will work with you to ensure your PREC is incorporated in accordance with all provincial legislation to avoid any compliance or liability issues. We also have relationships with several trusted accountants throughout the Greater Toronto Area and can provide you with referrals if you don’t already have one in place.
Incorporating a Personal Real Estate Corporation in Ontario
Incorporating a business means carefully considering several elements in advance. Below are some common issues to consider when establishing a PREC.
Every PREC must have a controlling shareholder, which must be the real estate agent or broker in question. It is possible to establish other shareholders for income sharing purposes, but only the real estate professional can own the voting shares of the business. They must also act as the sole Director and Officer.
Filing and Administrative Requirements
Incorporating a business requires a considerable amount of work upfront, as well as throughout the life of the corporation. You will have to maintain annual filings of the corporation and the business will face more stringent legal regulations than you did previously as a self-employed person. For instance, every corporation must have an annual meeting, and keep records of any major decisions or changes affecting the business.
Naming your PREC does not have to complicated. There are rules preventing using the name of the PREC for marketing purposes, so the name can simply be a number or something simple.
Contact GLG LLP in Toronto for Assistance and Advice on Establishing a Personal Real Estate Corporation
Incorporating a business requires careful consideration and has several requirements to ensure compliance with provincial and federal legislation. The lawyers at GLG LLP have developed relationships with several real estate professionals in Toronto and the surrounding areas and are exceptionally skilled in business law and the intricacies of incorporating a business in Canada. To discuss the creation of your Personal Real Estate Corporation with a member of our team, please contact us online or by phone at 416-272-7557.