A Personal Real Estate Corporation (PREC) allows a real estate agent to earn their business income through a corporation. It is formed by a single real estate agent and can provide huge tax benefits for agents. Personal real estate corporations may only provide real estate or ancillary services (real estate transaction-related services) as their main form of business. The real estate salesperson owning the PREC license must be the sole voting shareholder, as well as the sole director/officer of their personal real estate corporation.

What are the advantages of forming a Personal Real Estate Corporation?

• Tax deferral for life and retirement planning purposes.
• Reduction/elimination of Canada Pension Plan (CPP) contributions
• Income splitting with family members under certain circumstances to reduce family tax.
• This format is good for limited liability which means the owners' personal assets are protected from liabilities.

Who can form a PREC?

• Licensed Real estate agents who wish to receive their brokerage remuneration through a corporation can form a PREC.

Real Estate Services Regulation requires that the legal name of a personal real estate corporation must include both, but nothing other than:

1. The legal name, a recognizable short form of the legal name, or the licensee name of the controlling individual; and
2. The term personal real estate corporation
Example: Janiel Smith Personal Real estate Corporation.

Note: This is suitable for most corporations with single owner and corporations with multiple owners but do not want to differentiate between shareholders.

Note: Suitable for corporation who wish to have shareholders with voting power & non-voting power. Shareholders with voting power are decision makers while non-voting shareholders don't involve in any business decisions,

What is the use of a minute?
Corporation regulations require that you have a properly maintained minute book with up to date information and changes made to the business. When you visit a bank to open an account for the business, the minute book is accepted as proof of shareholders' names.
What is included in a minute book?

• Articles of Incorporation
• By-laws of the Corporation
• Minutes of the directors’ and shareholders’
• Meetings/Resolutions
• Directors and officer’s registers
• Shareholder register and ledgers
• Share transfer register
• Share certificates

Directors supervising the activities of the corporation and makes decisions.

B.C Registries provide a priority processing of incorporation for an additional fee. In priority queue, your corporation can be registered in 3 business days while a non-priority queue can take up to 25 business days. Once we receive the name approval, we will proceed to incorporate your business with that name.