Personal Real Estate Incorporation in Ontario

INCORPORATE YOUR PERSONAL
REAL ESTATE CORPORATION (PREC)

INCORPORATE A PERSONAL
REAL ESTATE CORP.
(PREC)

Done Right by Business Lawyers
Immediate Service. Competitive Pricing

Google Reviews

Lawyer is Hands On
Job Done Today

Google Reviews

  • Work with an Incorporation Lawyer from start to finish
  • Legal advice and guidance throughout the process
  • Includes all filing fees and corporate organizational documents
  • Efficient online process and quick turnaround times
  • With pricing comparable to the “Do-it-Yourself” online services
Personal Service & Advice
All Inclusive Packages
Easy Process by Phone/Email

Matthew Ordower, Lawyer
Find out more about us.

“We’ve helped many people incorporate in Ontario. If you have questions or need advice, feel free to call or email us. We offer a free 30 minute consultation.”

PERSONAL REAL ESTATE CORPORATIONS
$799 All Inclusive Pricing

OUR PACKAGE INCLUDES

PERSONAL
REAL ESTATE
CORPORATIONS

$799
All Inclusive

Our Package Includes

  • Electronic Minute Book
  • Articles & Certificate of Incorporation
  • Corporate By-Laws
  • Director & Shareholder Resolutions
  • Share Subscription & Share Certificates
  • Registers & Ledgers
  • E-signing with Docusign
  • – Electronic Minute Book
  • – Articles & Certificate of Incorporation
  • – Supplemental Agreement
  • – RECO Registrar Notification
  • – Corporate By-Laws
  • – Director & Shareholder Resolutions
  • – Share Subscription & Share Certificates
  • – Registers & Ledgers
  • – Government Filing Fee
  • – 3rd Party Fees Disbursements
  • – Nuans Name Search
  • – Business Number/Tax Accounts
  • – Form 1 Initial Return filing
  • – Legal Advice and Consultation
  • – E-signing with Docusign
  • Government Filing Fees
  • 3rd Party Fees Disbursements
  • Nuans Name Search
  • CRA Business Number/Tax Accounts
  • Form 1 Initial Return filing
  • RECO Notification & Supplemental Agreement
  • Legal Advice and Consultation
  • 5 star review  I recently worked with Ordower Law Professional Corporation while incorporating my business. The team was AMAZING! They were very prompt in responding to my requests and proved to be thorough when reviewing my documentation. The overall service they provided was over and above what I had expected - they gave me some really great start-up tips that I am thankful for!

    thumb ReRouting Inc.
    5/28/2018
  • 5 star review  Matthew and Jana went the extra mile for us - we incorporated federally very quickly. Pain free navigation through the whole process and a specially worded indemnity agreement which suits us down to the ground - all very good value for money. I wholeheartedly recommend them!

    thumb Adrian Bowker
    6/26/2018
  • 5 star review  Great communication, knowledge, and advice. We incorporated my small business within a few hours. Highly recommend!

    thumb Kyle Bannon
    12/13/2019
  • 5 star review  Matthew and his team helped me incorporate in less than one day. Right from the start till the paperwork got completed the communication was clear and concise. Thanks for helping me and all others who are starting up.

    thumb Som Thee
    6/12/2018
  • 5 star review  Matthew called me within an hour of my inquiry. He made me feel very comfortable with the whole process and briefly discussed my best options, how much it would cost and how long it would take. After conveniently e-transferring the fee, Jana called me within minutes to get a better understanding of how I wanted to structure my business. She was very friendly, relatable, knowledgeable and helpful. Overall, this experience took a daunting task and made it quick, easy and hassle free. Thanks guys!

    thumb Grandeur Zealous
    7/07/2018
  • 5 star review  Highly recommended!! After my initial phone call with Matthew, I knew the process of incorporating my business would be a breeze. Very professional, quick, and I really felt they had my best interest. Thanks again Matthew and Jana!

    thumb Lindsay Montgomery
    10/12/2018
  • 5 star review  Effective, efficient and very professional. Matthew and his team have done a great job at developing a system to help clients regardless of their situation. Worked with Jana and she was excellent, very nice and took the time to ensure everything was effectively communicated. Great stuff, highly recommend.

    thumb Santiago Almada
    4/08/2020
  • 5 star review  Great experience with Matthew and Sarah. Quick and professional service and they provided me with some tips and considerations for setting up my business beyond the scope of their work. I will definitely work with them again in the future.

    thumb Milica Kostic
    3/31/2018
  • 5 star review  Fabulous service and expertise. Matthew is a pleasure to deal, providing quick and professional advice. We were able to register our corporation and paperwork in a seamless transaction very quickly and efficiently. Would highly recommend.,

    thumb Parvesh Benning
    7/25/2019
  • 5 star review  I found out about Ordower Law Professional due to the excellent search engine optimization of their web site. The quality and clarity of the information on their website convinced me to choose them to help me go through the incorporation process. Excellent and quick service.

    thumb Julie Fortin
    3/02/2019

SOME FAQ’S ABOUT INCORPORATION

What are the tax advantages of incorporating a PREC?

The main tax advantages of incorporating a PREC is that your remuneration will be paid to the corporation and not you personally for tax purposes.  And, your PREC will be eligible for the small business deduction on that income:

The small business deduction effectively lowers your corporate tax rate to about 12.5% on the first $500,000 that your company makes each year. It’s available on your active business income only (not income from passive investments) and is available to Canadian Controlled Private Companies (referred to as CCPC’s). Keep in mind that this is a deferral only meaning that once you pull money out of your company it becomes your personal income and is taxed at the marginal tax rates on your T1 return. To the extent that you can leave the earnings in the company, the deferral “lives” and you can use the additional money to grow and invest in your business.

There may be other tax benefits and you can always consult an accountant. If you need a referral to an accountant in your area, just let us know.

Can I use my PREC for business other than real estate?

There are no restrictions on the business the PREC may carry on except the following: Your PREC cannot carry on the business of trading in real estate other than providing the services of its controlling shareholder to a brokerage, which it may do only if all of the criteria and conditions prescribed by the Real Estate and Business Brokers Act, 2002 (Ontario) and its regulations for personal real estate corporations are satisfied.

What are the criteria for your corporation to be considered a PREC?

1. The corporation is incorporated or continued under the Ontario Business Corporations Act.
2. All of the equity shares of the corporation are owned, directly or indirectly, by the controlling shareholder.  The controlling shareholder is the individual employed by the brokerage as a salesperson. Directly or Indirectly means that holding companies meeting certain criteria may be used.
3. The sole director of the corporation is the controlling shareholder.
4. The president, being the sole officer of the corporation, is the controlling shareholder.
5. Each non-equity share of the corporation is owned by the controlling shareholder or a permitted family member or permitted trust.
6. The controlling shareholder controls the business and affairs of the corporation and no written agreement changes that.

What conditions apply for your PREC to be exempt from registration?

The following conditions are prescribed for the purposes of  the Real Estate and Business Brokers Act, 2002.  These conditions are detailed and we are providing a brief summary only:
1. The controlling shareholder is employed by a brokerage to trade in real estate.
2. The PREC does not carry on the business of trading in real estate other than providing the services of its controlling shareholder to the brokerage.
3. You cannot represent to the public that you trade in real estate.
4. The PREC is not a brokerage.
5. Only the brokerage pays the PREC for trading in real estate, no other person.
6. The PREC does not hold funds in trust in connection with a real estate deal.
7. There is a written agreement between the PREC, the controlling shareholder and the brokerage governing the relationship between the brokerage and the corporation and its controlling shareholder and setting out certain specified matters such non-obstruction, cooperation and assistance.

Do I need a Section 85 Tax Rollover?

Speak to Your Accountant! There may be tax issues to consider in moving to a PREC. You may need to transfer the goodwill of your business to the PREC on a tax deferred basis by doing a Section 85 rollover.  Ask your accountant about whether a Section 85 Rollover would be advisable in your circumstances. Our package does not include the rollover paperwork, however we can certainly help if this is required. Our typical fee to create the paperwork for a general goodwill rollover is $500.00 plus HST and your accountant will file the election form with CRA when required.

How long does it take to incorporate?

For Ontario corporations, the entire process can be completed within 2-3 business hours. That’s because the incorporation documents are filed automatically.

Get in touch with us!

Or, Fill out the form


Or just drop by – the beers are always cold!

Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5