Kitchener-Waterloo based · Serving real estate teams and brokerages across Canada.
Two questions come up more than anything else. Should I incorporate, and how much of what I earn am I actually keeping.
Most agents get an answer to the first one from another agent, and never get an answer to the second at all.
Our PREC calculator covers Ontario, Alberta and British Columbia. Three questions, no email, no download. It shows you what stays inside a corporation, what that buys you, and it will tell you if incorporating does nothing for your situation.
You are paid in lumps, several weeks after the work, with a deduction taken by the brokerage before it reaches you. Your income swings by season and by market. Your car, your phone, your marketing and your home office are all part business and part personal, in proportions that change every year.
An accountant who sees one or two realtors a year is learning your business on your file. That is expensive, and it usually shows up as missed deductions and a structure that was never revisited.
Incorporation, registration with your provincial regulator, the share structure, and the corporate records. Ontario, Alberta and British Columbia. Fixed price, agreed before we start.
Commissions recorded against the deals that produced them, brokerage deductions tracked, and expenses categorised so they hold up if the CRA asks. Receipt capture on your phone rather than a shoebox in March.
T2 for the corporation, T1 for you, HST returns and instalments. Prepared by the same firm that keeps the books, so the return and the statements tell the same story.
Salary, dividends, or a mix, decided once a year rather than by accident every month. Salary builds RRSP room and CPP. Dividends do not. The right answer depends on what you already have.
Compilation engagements prepared to CSRS 4200 by a licensed CPA firm, usually within the same week. More on compilation statements.
Most agents come to us for one of two reasons, and they need different things.
Start with a structure session. Forty five minutes on how your PREC should be set up: salary versus dividends, whether a spouse or family member belongs in it, what to do with income that swings, and how property fits. You leave with a written plan, sent within 24 hours.
$299 plus sales tax, credited in full against the incorporation or other services if you go ahead.
Bookkeeping, HST, corporate and personal tax on a fixed monthly fee, set by the size of your business rather than by hours. You get a range in writing within four hours of the first call. See how our pricing works.
Once you have agents on splits and staff on payroll, the questions change. Company dollar, cost per closing, what a listing is worth against a buyer side, and what the business looks like without your own production in it.
It depends on how much you earn above what you need to live on, because that gap is the only money a corporation can do anything with. Run the calculator and you will have a real answer in about two minutes.
In Ontario, the usual corporate naming rules apply and the name must not suggest the corporation is trading in real estate. The common format is your name followed by Professional Real Estate Corporation. Alberta and British Columbia have their own conventions, and we will check yours before filing.
Yes. There are restrictions on earning compensation from real estate trades, but nothing stopping the corporation from holding investments. Two things to know: investment income inside a corporation is taxed at a higher rate than active business income, and passive income above $50,000 starts reducing your access to the small business rate.
The corporation is not licensed, so there is nothing to transfer. Your PREC signs a new agreement with the new brokerage, and you give notice to your regulator as required. In Ontario that is RECO, in Alberta RECA, and in British Columbia the BC Financial Services Authority.
One. You must hold the controlling interest, and the corporation has to be registered with your provincial regulator before the brokerage can pay it.
Common and fixable. Catch-up work is quoted separately from the monthly fee, by year, so you are not paying for it forever. You see the number before we start.
Our office is in Kitchener and we work with agents across Canada. Everything runs through a secure portal, so where you are does not change how the work gets done.
Yes, and it is most of what we do. If you have agents on splits and staff on payroll, the teams page is written for you.
Three questions, no email, and a real answer on whether incorporating is worth it for you. If it is, we will tell you what setting it up involves.