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HOW DO I KNOW IF IT IS A GOOD IDEA TO SET UP MY OWN PERSONAL REAL ESTATE CORPORATION

In the same way that no real estate agent is the same, it is also true that the financial circumstances of every real estate agent are also not the same. While there are definite tax advantages in incorporating, it is not for everyone. For example, if you take out all the money from your corporation each year, you will likely still end up paying the same amount of tax. Still, due to the ability to take out money by way of dividends, or salary, defer income, employ family members with certain restrictions and the added benefits of leaving money in your corporation to grow each year, there are many reasons to incorporate. You must therefore discuss this with your accountant first before making any decisions. 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