Note: If you want to add more additional shareholders, you may need to place a customized order. For now, you can place an order with these shareholders, and afterward, give us a call to convert it into a customized order.
Though in most PREC cases, class B non-voting shares are not issued, yet as per PREC rules, the corporation has choice to issue class B non-equity (non-voting) shares. The controlling shareholder and/or family member (minimum age 18) can hold non-equity class B (non-voting) share.
To register a corporation in your designated province in Canada, a local provincial physical address is required, where the government will send documents. It must be in the specific province that you are registering with. If you do not have a physical address, our agency provides an address and mail scanning service.
Corporation's officer (president), share structure, share class, number of shares and controlling shareholder are prepared in the minutebook document. As minutebook is not selected, these information will be skipped. Click previous to include minutebook, or next to continue without minute book.
Why Minute Book Matters?
A Minute book is a corporate legal document prepared by our legal and accounting team. As per the corporation act, a Minute book is MANDATORY. The minute book consists of by-laws, share structure & other legal sections. It's REQUIRED to open a bank account. Without it, a corporation is not complete. A Minute book must be presented when a corporation is audited. The next page will skip if you do not choose Minute Book. We left here as optional because many law firms incorporate with us who prepare their own Minute Book.
Ontario Personal Real Estate Corporations (PRECs) are a type of business structure that allows real estate agents in Ontario to incorporate their businesses. This legal structure was permitted following changes to the Real Estate and Business Brokers Act. PRECs enable real estate agents to enjoy certain tax advantages, such as lower corporate tax rates on retained earnings and potential tax-deferral opportunities. Additionally, they can facilitate income splitting with family members who are employed by the corporation or hold non-voting shares, subject to certain conditions and restrictions.
Here are some key details about Ontario Personal Real Estate Corporations:
Purpose: The primary purpose of an Ontario Personal Real Estate Corporation is to provide real estate brokerage services. It allows real estate professionals to establish a separate legal entity for conducting their real estate business.
Limited Liability: One of the main benefits of operating as a Personal Real Estate Corporation is the limited liability protection it provides. This means that the corporation‘s shareholders are generally not personally liable for the corporation’s debts or liabilities arising from real estate transactions.
Licensing Requirements: In order to operate as a Personal Real Estate Corporation in Ontario, the corporation and its shareholders must meet certain licensing requirements set by the Real Estate Council of Ontario (RECO). These requirements may include holding the appropriate real estate licenses, fulfilling educational criteria, and complying with RECO regulations.
Shareholder Eligibility: Only licensed real estate professionals can be shareholders of an Ontario Personal Real Estate Corporation. Each shareholder must maintain their individual license and remain in good standing with the licensing authority.
Income Tax Considerations: Operating as a Personal Real Estate Corporation may have income tax implications. It is important to consult with an accountant or tax professional to understand the tax advantages and compliance requirements associated with this type of corporation.
Regulatory Compliance: Personal Real Estate Corporations are subject to the regulations and rules of the real estate industry, including those imposed by the Real Estate Council of Ontario (RECO). Compliance with professional and ethical standards, as well as reporting obligations, is essential for maintaining a valid license and conducting business lawfully.
Advantages and Considerations: Operating as a Personal Real Estate Corporation can offer benefits such as potential tax advantages, increased credibility, and the ability to build and protect personal assets. However, there may be additional administrative and compliance requirements compared to operating as an individual real estate professional.
