Real estate agents are now able to incorporate their businesses and receive some of the tax benefits available to doctors, lawyers and accountants. This is a great opportunity for agents but it is not for everyone. You must first speak to your accountant to determine if this is right for you and when would be the ideal time to incorporate. Once incorporated, your corporation will receive all real estate commissions and other remuneration payable to you by your real estate brokerage. You will have to set up your corporation so that it complies with all RECO requirements, including who can be the officer, director and controlling shareholder of your corporation. At our law firm, we have prepared a complete incorporation package for real estate agents, for a fee of $600 plus HST and disbursements (Total $1,350.00). We have prepared the structure so that it complies with all RECO requirements and we provide the agreement you need to enter into with your brokerage to get started.
If you have any questions about setting up your own PREC, please email me at Mark@RealEstateLawyers.ca or call me toll-free at 1-888-876-5529