Personal Real Estate Corporation (PREC)

A PREC allows licensed real estate salespersons and brokers to incorporate and enjoy significant income tax deferral advantages. AMQ Legals registers your PREC in Ontario or British Columbia — fast, compliant, and fully online.

🏡 For Licensed REALTORS®

💰 Significant Tax Deferral

⚡ Ready in 2 Hours

✅ Brokerage-Compliant Setup

PREC Package

Starting from

$ 5

+ Government filing fees included

NUANS name search & report
Articles of Incorporation
PREC-compliant share structure
Corporate bylaws & resolutions
Certificate of Incorporation
Controlling shareholder structure
Expert legal counsel review

Not sure which to pick? Get a free consultation

Choose Your Province

PREC Registration Packages

PRECs are currently available in Ontario and British Columbia. Both packages include full legal preparation, NUANS search, and same-day document delivery.

🏙️

🇨🇦 Ontario

Ontario Personal Real Estate Corporation

Co-operative Corporations Act, Ontario

$300

+ govt. fee included

⚡ Rush: typically 2 hours

Registered under TRESA — Ontario's real estate legislation
NUANS name search & report included
Articles of Incorporation — PREC-compliant
Controlling shareholder structure for the registrant
Voting shares held exclusively by the registrant
Corporate bylaws & organizational resolutions
Minute book & share certificates prepared
Certificate of Incorporation delivered by email
In-house legal counsel review

🌊

🇨🇦 British Columbia

BC Personal Real Estate Corporation

Real Estate Services Act, British Columbia

$300

+ govt. fee included

⚡ Rush: typically 2 hours

Registered under BC's Real Estate Services Act
NUANS name search & report included
Articles of Incorporation — PREC-compliant
Controlling shareholder structure for the registrant
Voting shares held exclusively by the registrant
Corporate bylaws & organizational resolutions
Minute book & share certificates prepared
Certificate of Incorporation delivered by email
In-house legal counsel review

Understanding PRECS

What Is a Personal Real Estate Corporation?

The PREC Explained

A Personal Real Estate Corporation (PREC) is a corporation that is wholly owned and controlled by a single registered real estate salesperson or broker. It allows them to receive commission income through their corporation rather than personally — unlocking significant income tax deferral benefits.

In Ontario, PRECs were made legal in October 2020 under the Trust in Real Estate Services Act (TRESA). In BC, they are authorized under the Real Estate Services Act. Both provinces have specific structural requirements to ensure the corporation remains exclusively tied to the licensed registrant.

The key tax advantage is income splitting and deferral. Commission income earned through the PREC is taxed at the lower corporate rate — as low as 12.2% in Ontario — rather than the individual’s top marginal rate of up to 53.53%. The difference remains inside the corporation and can be invested, deferred, or distributed strategically.

How Does the Money Flow?

You remain a registrant of your brokerage as an individual throughout. The PREC does not hold the real estate licence — you do. The PREC simply receives the economic benefit of your commissions.

Who Qualifies for a PREC?

Eligibility requirements — Ontario & BC

You Must Be a Registered Salesperson or Broker

Only individuals who hold a valid real estate registration with RECO (Ontario) or BCFSA (BC) are eligible to incorporate a PREC. Unlicensed individuals cannot hold voting shares.

You Must Be the Controlling Shareholder

All voting shares of the PREC must be held by you — the registrant — personally. Non-registrants (spouses, family members) may hold non-voting shares only.

You Must Be the Sole Director

In Ontario, only the registrant may serve as a director of the PREC. This ensures the corporation remains under your control at all times.

Brokerage Authorization Required

Your brokerage must agree to pay commissions to your PREC. AMQ Legals prepares all the documentation you need to present to your brokerage for authorization.

PREC Name Must Identify the Registrant

In Ontario, your PREC’s name must include your legal name or the name under which you are registered with RECO, along with a corporate identifier (Inc., Ltd., Corp.).

Important: A PREC cannot trade in real estate, hold a real estate registration, or employ other registrants. It exists solely to receive and manage the economic benefits of your individual registration.

Tax Advantages

How a PREC Saves You Money

A PREC’s primary benefit is the ability to defer personal income tax by earning commissions through a corporation. Here’s how the math works.

Income Tax Deferral

Commission income received by your PREC is taxed at the small business corporate rate (12.2% in Ontario) — not your personal marginal rate of up to 53.53%. The difference stays inside the corporation, growing tax-free until you choose to draw it out.

Income Splitting with Family

Eligible family members (spouse, adult children) can hold non-voting shares of your PREC. You can pay dividends to these shareholders, spreading income across lower tax brackets and reducing the family’s overall tax burden.

Retained Corporate Earnings

Money left inside the PREC after corporate tax can be invested in a diversified portfolio — stocks, bonds, real estate — and compound tax-efficiently over time, accelerating your wealth-building compared to paying full personal tax and investing the remainder.

Retirement Planning Flexibility

Instead of drawing all your income at once, you can time withdrawals from the PREC for years when your personal income is lower — such as after retirement — to minimize lifetime tax and create a tax-efficient retirement income stream.

Tax Deferral Illustration

Ontario REALTOR® — $200,000 commission income

WITHOUT PREC (Personal)

Commission Income

$200,000

Personal Tax (est. 48%)

−$96,000

After-Tax Income

$104,000

WITH PREC (Corporate)

Commission Income

$200,000

Corporate Tax (est. 12.2%)

−$24,400

After-Corporate-Tax Retained

$200,000

Salary/Dividend to You

As needed

Annual Tax Deferral

~$71,600

* Illustrative estimates only. Actual savings depend on personal income, deductions, province, and tax elections. Consult a CPA for personalized advice.

Requirements & Comparison

What You Need to Register a PREC

Valid Real Estate Registration

You must hold a current, valid registration as a salesperson or broker with RECO (Ontario) or BCFSA (BC). Your registration must be in good standing at the time of PREC incorporation.

Proposed PREC Name

Your PREC name must include your legal name or registered trading name, plus a corporate designator (Inc., Ltd., Corp., or Limited). In Ontario it must also include “Personal Real Estate Corporation” or “PREC”. AMQ Legals advises on naming compliance.

Director & Shareholder Details

You will be the sole director and hold all voting shares. Non-voting shares can be issued to eligible family members. Provide full legal names and addresses for all directors and shareholders.

Registered Office Address

A physical address in Ontario or BC is required as the registered office. A PO box is not acceptable. AMQ Legals can provide an address service if needed.

Brokerage Authorization

Your brokerage must authorize payment of commissions to your PREC. We prepare all supporting documents to facilitate this authorization with your brokerage.

Feature

🏙️ Ontario

🌊 BC

Governing Legislation

TRESA, 2002

Real Estate Services Act

Regulator

RECO

BCFSA

Effective Date

October 2020

2007+

Sole Director = Registrant

Required

All Voting Shares — Registrant Only

Required

Non-Voting Shares — Family Members

Allowed

PREC in Corporation Name

Required (ON

Not required

PREC Can Hold Other Businesses

Restricted

Brokerage Authorization Required

Yes

Corporate Tax Rate (est.)

12.2%

11%

Why Choose AMQ Legals

Your Trusted PREC Registration Partner

Helping REALTORS® build financial freedom through their PREC

2 hr

Avg. Filing Time

$300

Starting Price

ON+BC

Provinces

100%

Legal Review

⚖️

PREC Legislation Specialists

PREC setup has strict legal requirements around share structure, director rules, and naming conventions that differ from standard incorporations. Our team specializes in TRESA (Ontario) and BC’s Real Estate Services Act compliance.

📋

Brokerage-Ready Documentation

We prepare all the documents you need to present to your brokerage for commission-routing authorization — including the corporate structure summary, certificate, and shareholder declaration. Everything your brokerage needs, ready to go.

⚡

Fast, Fully Online Registration

Complete our PREC-specific intake form and our legal team prepares every document — Articles, bylaws, share certificates, minute book — and files with the registry. Your Certificate arrives within 2 business hours.

💲

Transparent All-In Pricing

Our PREC packages start at $300 with all government filing fees included. No hidden charges, no surprise invoices. What you see is what you pay — allowing you to plan without uncertainty.

Simple Process

Fully online, expert-guided process. From intake form to Certificate of Incorporation in as little as 2 hours.

Complete the Intake Form

Fill out our PREC-specific online form with your registration details, proposed PREC name, director and shareholder information, and registered address. Takes under 10 minutes.

Legal Preparation & Filing

Our PREC specialists run the NUANS name search, prepare Articles of Incorporation with a compliant share structure, draft corporate bylaws, and file everything with the Ontario or BC registry.

Receive Your PREC Documents

Your Certificate of Incorporation, Articles, bylaws, share certificates, and brokerage authorization documents are delivered by email within 2 business hours. Present to your brokerage and start receiving commissions through your PREC.

Common Questions

Frequently Asked Questions

Who can incorporate a PREC in Ontario?

Only individuals who hold a valid, active registration as a real estate salesperson or broker with RECO (Real Estate Council of Ontario) are eligible to incorporate a PREC. The registrant must be the sole director and hold all voting shares. New registrants can incorporate a PREC at any time after receiving their registration.

Does my brokerage have to agree to pay my PREC?

Yes. Your brokerage must authorize and agree to route your commissions to your PREC instead of to you personally. Most brokerages readily accommodate this, but you need to notify them and complete the required agreements. AMQ Legals prepares all the documentation to make this process straightforward for both you and your brokerage.

What name must my PREC have in Ontario?

In Ontario, TRESA requires that your PREC’s legal name include your legal name or the name under which you are registered with RECO, plus the words “Personal Real Estate Corporation” or the abbreviation “PREC”, and a corporate designator such as Inc., Ltd., or Corp. For example: “Jane Smith PREC Inc.” or “Jane Smith Personal Real Estate Corporation.” AMQ Legals will confirm your name complies before filing.

Can my spouse or family hold shares in my PREC?

Yes — family members can hold non-voting shares of your PREC. This allows you to pay dividends to eligible shareholders and spread income across lower personal tax brackets, reducing your family’s overall tax burden. Only you (the registrant) can hold voting shares and serve as director.

Does my real estate licence move into the PREC?

No. Your real estate registration remains with you personally. The PREC does not hold a real estate licence and cannot trade in real estate. You continue to work as an individual registrant through your brokerage — the PREC simply receives the economic benefit of your commissions.

What are my obligations after incorporating a PREC?

After incorporating, you must file an Initial Return within 60 days, maintain a registered Ontario or BC address, file Annual Returns each year, and update the registry when director or address information changes. You should also work with a CPA to set up corporate bookkeeping, payroll, and tax filings. AMQ Legals offers post-incorporation compliance services to keep your PREC in good standing.

Ready to Incorporate Your PREC?

Start deferring taxes and building wealth through your Personal Real Estate Corporation. Expert registration in Ontario or BC — delivered within 2 business hours.