Realtor Incorporation & PREC Setup in Toronto
If you’re a successful real estate agent in Toronto, setting up a Personal Real Estate Corporation (PREC) can significantly reduce and defer the tax you pay on your commission income. NRK Accounting helps realtors across Toronto and North York decide whether a PREC is right for them, set it up correctly, and handle the ongoing tax planning and accounting, so you keep more of what you earn.
- CRA Compliant
- Trusted by Toronto Realtors
- Free Consultation
What Is a Personal Real Estate Corporation (PREC)?
A Personal Real Estate Corporation (PREC) is a corporation that licensed real estate agents in Ontario can use to receive their commission income. Instead of earning all your commissions personally and paying tax at high personal rates, a PREC lets you earn income through your corporation, opening the door to tax deferral, income splitting where available, and more control over how and when you're taxed. We help you understand whether a PREC makes sense for your situation andhandle the entire setup.
The Tax Benefits of Setting Up a PREC
For realtors earning strong commission income, a PREC can offer real advantages:
Tax deferral
leave income in the corporation and defer personal tax, keeping more capital working for you
Lower corporate tax rate
income kept in the corporation is taxed at the lower small business rate rather than your top personal rate
Income smoothing
control when you take income personally to manage your tax bracket year to year
Income splitting
where the rules allow, share income with family members in lower brackets
Investment opportunities
invest retained earnings inside the corporation
actual benefit depends on the agent’s situation.
How We Help Realtors Incorporate
PREC Suitability Review
We assess your commission income and goals to determine whether a PREC is worth it for you.
Complete PREC Setup
Incorporation, CRA account setup, and coordination with your brokerage and regulatory requirements.
Salary vs. Dividend Planning
Accurate annual filings and financial statements for your PREC.
Ongoing Bookkeeping & Tax Planning
Should You Set Up a PREC?
Investing in property yourself? See our Real Estate tax services for investors and landlords.
Why Realtors Choose NRK Accounting
- Experience setting up and managing PRECs for Toronto real estate agents
- Honest advice on whether incorporating is actually worth it for you
- One firm for setup, corporate tax, bookkeeping, and ongoing planning
- Transparent, upfront pricing quoted before we start
- Local Toronto & North York service with virtual options
- Over 110 five-star reviews and more than a decade serving the GTA
Frequently Asked Questions
Straight answers on PREC setup, tax savings, and ongoing accounting.
What is a PREC?
A PREC (Personal Real Estate Corporation) is a corporation that licensed Ontario real estate agents can use to receive their commission income. It allows tax deferral, potential income splitting, and taxation at the lower corporate rate instead of your full personal rate. We help you decide if it’s right for you and set it up correctly.
Should I set up a PREC?
A PREC usually makes sense once you earn more commission than you need to live on, so you can leave income in thecorporation and defer tax. If you spend everything you earn, the benefit is smaller. We review your numbers honestly and tell you whether it’s worth it.
How much tax can a PREC save me?
Savings depend on your income and how much you can leave in the corporation, but a PREC can defer tax by taxing retained income at the lower corporate rate instead of your top personal rate, often a meaningful difference for higherearning agents. We calculate your specific potential benefit.
How do I set up a PREC in Ontario?
Setting up a PREC involves incorporating, meeting RECO and brokerage requirements, and registering the corporation with the CRA. We handle the full setup and coordinate the requirements so it’s done correctly the first time.
Do you handle the ongoing accounting for my PREC?
Yes. Beyond setup, we handle your corporation’s bookkeeping, annual T2 corporate tax filing, salary versus dividend planning, and ongoing tax strategy, so your PREC stays compliant and optimized year after year.
Ready to strengthen your financial health?
Book a free consultation today to get expert dental accounting support in Toronto and North York.
Location
40 Wynford Drive, Suite 211 North York, Toronto
Phone
416-577-4301
info@nrkaccounting.com