Ontario Personal Real Estate Corporation

To register a Personal Real Estate Corporation (PREC) in Ontario, allows a real estate agent to earn their business income through a corporation and can provide huge tax benefits for agents. Registering is easy: simply complete our details which will take few minutes. Once submitted, our dedicated registry specialist will carefully review your information. Your documents will then be promptly delivered to you via email.

Who can register a PREC?

Licensed real estate agents seeking to receive their brokerage remuneration through a corporation can establish a Personal Real Estate Corporation (PREC).

What are the benefits of PREC?

1. Tax Benefit:  By Incorporating a PREC you can have all the tax benefits.
2. Hiring Spouse and Income Splitting: You have the option to defer taxes and distribute your withdrawals among family members. For example, if you employ your spouse to manage advertising, you can split the withdrawal income between yourself and your spouse.
3. Legal and Debt Liability: A key advantage of a PREC is its creation of a separate legal entity, your personal assets are secure. Operating under a PREC means that any debts or legal obligations are tied to the company and its assets, safeguarding your personal assets from liability.

WHAT NAME CAN I USE FOR THE PREC?

There are no limitations or specific requirements with respect to the name of a PREC other than those imposed on any business corporation incorporated or continued under the Ontario Business Corporations Act. The name must meet the normal rules for corporate names and should not suggest that the PREC itself is trading in real estate. 

An example of an appropriate name would be the individual Registrant’s name followed by a “Personal Real Estate Corporation”. For example: “William Beckham Personal Real Estate Corporation. (The name must be end with the Personal Real Estate Corporation).

Please provide the physical address of your business location. Post box addresses are not acceptable.

Documents will be sent via email as per the selected time frame.

One PREC Controlled by One Registrant

Controlling registrant” holds all the important roles in the corporation

Control of the PREC cannot be delegated.

You can select Two classes of shares if you want to include your spouse or other family members as non-voting shareholders in the corporation. (Class B Shares)

In Ontario, it is mandatory to complete this filing within 60 days of incorporating your business. This step is essential as it provides important information about your new corporation to the government. Failure to file the initial return within this timeframe may result in the dissolution of the corporation by Service Ontario. Initial Return is not a Annual Return.