Personal Real Estate Corporations in Ontario with a Lawyer

Maximize Your Tax Benefits with DiMinno Rizzi In Association

Discover the tax advantages of Personal Real Estate Corporations (PRECs) in Ontario. DiMinno Rizzi In Association helps real estate professionals incorporate and benefit from significant tax savings. Learn how a PREC can transform your real estate business today!

Unlock the Power of Personal Real Estate Corporations for Ontario Real Estate Agents

As a real estate professional in Ontario, are you looking for ways to optimize your tax strategy and keep more of your hard-earned money? DiMinno Rizzi In Association specializes in helping real estate agents like you incorporate Personal Real Estate Corporations (PRECs) to enjoy substantial tax benefits and grow your real estate business.

What is a Personal Real Estate Corporation (PREC)?

A Personal Real Estate Corporation (PREC) is a professional corporation specifically designed for real estate agents in Ontario. Introduced under the Real Estate Services Act, PRECs offer real estate professionals the opportunity to incorporate their business and access significant tax advantages previously available only to traditional private corporations.

Key Tax Benefits of Incorporating a Personal Real Estate Corporation in Ontario

Incorporating a PREC provides game-changing advantages to your business, including:

Tax Deferral: Pay the lower corporate tax rate instead of the highest personal tax rate on income retained in the corporation
Income Splitting: Share income with family members through non-voting shares
Tax Savings: Benefit from a lower tax rate on passive investments within the corporation
Flexibility: Choose to receive either a salary or dividends based on your financial situation

Click here to learn more about the advantages of incorporation.

Important Points to Consider for Your PREC

When incorporating your Personal Real Estate Corporation, keep in mind:

You must be the controlling shareholder and sole director of your PREC
Your PREC can issue non-equity shares to family members for income splitting
Proper documentation and written provisions are crucial for compliance
Your PREC must be beneficially owned by a registered real estate professional

Click here to learn more if incorporating a PREC is right for you.

For a limited time, we are offering FREE legal strategy sessions. This is a $400.00 value - don't miss out!

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Transform Your Real Estate Business with a PREC

By incorporating a Personal Real Estate Corporation, you can:

Defer taxes on excess income not needed for living expenses
Invest more money into growing your real estate business
Create a tax-efficient structure for your self-employed revenue
Potentially save thousands in taxes annually compared to a sole proprietorship

These benefits are well worth the cost to incorporate. Most of our clients make up their initial cost from tax savings in just one month!

How DiMinno Rizzi In Association Can Help You Incorporate Your PREC

Our team of experienced corporate lawyers specialize in helping real estate professionals navigate the complexities of incorporating a Personal Real Estate Corporation in Ontario. We offer:

Expert guidance on PREC formation and corporate structure
Customized tax planning strategies to maximize your tax benefits
Assistance with compliance and ongoing corporate maintenance
Advice on income splitting and dividend distribution to family members
Strategies to optimize CPP contributions and other financial factors

Why Choose DiMinno Rizzi In Association for Your Personal Real Estate Corporation?

What Sets Our Incorporation Services Apart

Expertise in both federal and provincial incorporation
Streamlined incorporation process completed within 1-3 business days
Guidance on corporate governance and ongoing compliance
guidance on advantages and disadvantages of incorporation
Assistance with extra provincial registration in Ontario, British Columbia, and other provinces
Support for Canadian residents and non-resident entrepreneurs
Industry-specific advice on business agreements, entity structuring, tax minimization strategies, business succession planning, intellectual property protection, raising capital, and more!
Additional legal services, like partnership agreements and contracts, at deep discounts
Access to our rolodex of vetted professionals, investors, and founders

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What Our Clients Say

“I have met many lawyers on my decades long real estate journey, and Antonio DiMinno is
definitely one of the top attorneys I have come across. If you are serious about business, you have to give him a call!”

Danielle Chiasson
Real Estate Investing Company
“Best startup lawyer. I’m going to recommend him to all my friends. Helped me a ton with exiting my business.”

Matthew Wong
Technology Start-Up Owner
“Antonio assisted me in drafting service agreements for my consulting business. He understood my specific concerns and ensured that the agreements properly protected my interests. I recommend Antonio for your business’s legal needs!”

Meghal Khakar
Consultant Business Owner

Why Clients Choose DiMinno Rizzi In Association

Bespoke Service

Personalized, tailored, and business-savvy legal solutions.

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Ridiculous Value

We don’t compete on price, we compete on value. We guarantee you will get the best value for your money. Period.

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Invested in Your Success

Timing is everything, especially in business. We aim to be your long-term legal partner. Your success is our success.

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We Walk the Walk

Unlike most lawyers, we are entrepreneurs and investors ourselves. We understand the practicalities of business.

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Clear - No Bs!

We explain the law in plain English. Practical, clear, and straight-forward advice for business owners by business owners.

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Access to Our Roladex

When you hire us, you get plugged into our network of vetted professionals, business owners, and investors.

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Take your real estate business to the next level with a PREC

Don’t navigate the complex world of business incorporation alone. The corporate law experts at DiMinno
Rizzi In Association will help you navigate the incorporation process and maximize your tax benefits.

Contact us today for a FREE strategy session to learn whether a PREC is right for you.

For a limited time, we are offering FREE legal strategy sessions. This is a $400.00 value - don't miss out!

CLAIM MY FREE STRATEGY SESSION

Frequently Asked Questions

How long does it take to set up a Personal Real Estate Corporation in Ontario?

The process of setting up a PREC in Ontario typically takes 1-2 weeks. This includes preparing and filing the necessary documents, obtaining a certificate of incorporation, and registering with relevant authorities. Working with experienced professionals like DiMinno Rizzi can help streamline the process and ensure all requirements are met efficiently.

Can I transfer my existing real estate business to a PREC?

Yes, you can transfer your existing real estate business to a PREC. This process involves careful planning to ensure a smooth transition of assets and liabilities. It’s crucial to work with tax and legal professionals to structure the transfer properly, addressing potential tax implications and maintaining compliance with regulatory requirements.

How does incorporating a PREC affect my personal liability as a real estate agent?

Incorporating a PREC does not shield you from personal liability for your professional activities as a real estate agent. You remain personally responsible for your actions and decisions in your real estate practice. However, a PREC may offer some protection for business assets from personal creditors in certain situations.

Can I have multiple shareholders in my Personal Real Estate Corporation?

No, a PREC in Ontario can only have one voting shareholder, who must be the controlling mind of the corporation and a registered real estate professional. However, you can issue non-voting shares to family members for income splitting purposes, subject to specific rules and restrictions outlined in the legislation.

How does incorporating a PREC affect my relationship with my brokerage?

Incorporating a PREC doesn’t change your fundamental relationship with your brokerage. You’ll still be required to work under a registered brokerage as per Ontario regulations. However, your commissions can now be paid to your PREC instead of to you personally, allowing for potential tax advantages and financial planning opportunities.

Are there ongoing compliance requirements for maintaining a PREC in Ontario?

Yes, there are ongoing compliance requirements for PRECs in Ontario. These include annual corporate filings, maintaining proper corporate records, holding annual meetings, and ensuring continued adherence to RECO regulations. It’s important to work with professionals who can help you stay compliant and up-to-date with all requirements.

Can I use my PREC for other business activities besides real estate?

A PREC in Ontario is specifically designed for real estate activities and must derive its income primarily from the provision of real estate services. While some ancillary activities may be permitted, it’s crucial to consult with a tax professional to ensure any additional business activities don’t jeopardize your PREC’s status or tax benefits.