An Official Intermediary of the Federal and Provincial Government
An Official Intermediary of the Federal and Provincial Government
We’re an official member of the Corporations Canada.
Fast. Simple. Transparent. No Hidden Fees.
Instead of being taxed personally right away at a high rate (over 50% if you’re making good money), your PREC gets taxed at a much lower corporate rate—around 12% on the first $500,000. That means more money stays in your business to reinvest or save for later.
You might be able to pay dividends to family members in lower tax brackets using non-voting shares. This can lower your family’s overall tax bill, especially if you’re the main earner in a high tax bracket.
You still work through your brokerage as usual, but your PREC lets you split your real estate income from your personal finances. That makes things cleaner and opens up tax benefits.
A PREC gives you flexibility to plan ahead, whether it’s saving for retirement, income splitting, or reinvesting earnings. You’ve got tools to optimize your tax situation your way.
Feature |
Standard Corporation |
Professional Corporation |
|---|---|---|
Who Can Incorporate |
Licensed real estate agents/brokers only | Anyone (entrepreneurs, professionals, etc.) |
Purpose |
To receive income from real estate activities | Any business activity or investment purpose |
Restrictions |
Must follow provincial real estate rules; usually one shareholder (the agent) | Fewer restrictions; flexible ownership |
Tax Benefits |
Access to small business tax rate; tax deferral | Also gets small business tax rate and benefits |
Income Splitting |
Limited or restricted (varies by province) | More flexibility with share classes |
Regulations |
Yes – governed by provincial real estate council | No professional regulation unless regulated field |
Naming Rules |
Must include legal name of the agent | No such requirement |
Whether you’re starting a PREC in Ontario, BC, Alberta or New Brunswick, our express service means you don’t have to wait days for government processing.
Quick. Compliant. Done Right the First Time.
A PREC is a legal corporation that allows a licensed real estate professional (like a realtor or broker) to earn their commission income through a corporation rather than personally. This structure is available in provinces like Ontario, British Columbia, Alberta, and New Brunswick (with specific rules in each).
Only a licensed real estate professional (e.g., realtor or broker) can incorporate a PREC.
Yes, you can incorporate online by completing a simple form on Canada Incorporation Agency website, it will take around 15 minutes. After completing the payment, we will send you a confirmation email, and our agent will contact you to confirm all the order details. We will incorporate your company and email the Certificate and Articles of incorporation to you.
It’s not required, but it’s a good idea. Canada Incorporation Agency has a team of professional lawyers and filing agents that can help you out with the paperwork for your Professional Corporation. Bylaws, governance, and CRA compliance can get complicated.
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