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

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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  Excellent service!! Very responsive and made the process of incorporating look so much easier. Hands down the best law firm I have personally engaged with. Now a loyal customer!!

    thumb Harshil Sanghavi
    8/16/2019
  • 5 star review  I was being helped by Matthew and I am extremely satisfied with his work. He is very responsive, helpful, and supportive. I needed an incorporation service and I could not recommend this firm more. I will definitely bring my business back to them in the future.

    thumb Dom Mazzuca
    7/06/2020
  • 5 star review  After searching "provincial incorporation Toronto", Ordower Law was one of the many search results that came up. After contacting almost 10 different places regarding the incorporation process, Matt and his team were clearly the most professional and knowledgeable in the work. They are the real deal and I highly recommend their services.

    thumb Arun Sharma
    6/23/2020
  • 5 star review  If you are in search of a true professional who'd handle your legal matter with no-nonsense approach, Matthew is definitely your guy! My business partner and I are extremely satisfied with his services, particularly at how well the entire Ordower team coordinated to get things done well before the deadline. Matthew delivered everything that was promised and I’d recommend his services to anyone in need without any reservations.

    thumb Alkam Airkin
    7/18/2019
  • 5 star review  After viewing countless similar companies' websites and ads on google, I found "OrdowerLaw" through a google search. They are very responsive in their communication, courteous and pleasant, transparent in their dealings, effective and efficient in performing their job, and above all very affordable. They set up a Federal Corporation for me within one business day. I visited them once in their offices and explained them my requirements. they did everything and finished the job in one day. Roman and Mathew were really helpful!

    thumb Maroof Hussain Sabri
    10/11/2018
  • 5 star review  Outstanding service. My incorporation process was simple and quick thanks to Matthew and Roisin. The service went above and beyond just incorporating. Matthew was able to guide and advise me on the best options for my needs, as well as educate me on how the corporation structure works. I greatly appreciate all of his good advice. It helps so much especially when just starting out.

    thumb Elena Koustova
    3/31/2020
  • 5 star review  Had a great experience with Matthew and Jana. I hired them to help me with some corporate legal issues. They got me exactly what I wanted, working very efficiently and quickly (I went to another firm befor them and was told it would take 5 times as long as it took Matthew to get what I hired them to do). They were great at explaining a lot of info about the process and the law in a clear and concise way that’s easy to understand. I left very happy. Highly recommend. Josh

    thumb Joshua Goldberg
    3/22/2018
  • 5 star review  If you’re looking to incorporate you came to the right place. Service, price and knowledge exceeded all expectations. Jana and Matthew were an absolute pleasure to work with and I highly recommend them to anyone looking to incorporate a business. I’d give them 6 stars if it was possible.

    thumb Andrews McBride
    1/26/2019
  • 5 star review  Very quick! I am very happy with Ordower Law. Matthew Ordower handled my needs directly. I needed to establish a corp. quickly and Ordower Law had my needs met efficiently and within the same morning that I called.

    thumb Mark Smethurst
    8/31/2019
  • 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

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!

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Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5