Realtors in Ontario are in for a treat, as they may now change their company into a Personal Real Estate Corporation that opens in a new window and maximizes their income while lowering their expenses. The Prec Ontario government issued new guidelines for realtors under the Business Corporations Act, allowing you to have more advantage of the various perks of being a corporation. PREC is a legal entity independent from the controlling registrant, and it allows realtors to use the benefits of incorporation, such as tax and income planning. So, here are some guidelines to improve your business income by forming a PREC.
- Minimize taxes:
Nowadays, all of you want to pay fewer taxes and keep more of your hard-earned money. When you decide to form a corporation, real estate agents will considerably decrease their taxes. For an instant, some realtors are likely paying a personal tax rate of 53.53 percent on any income. With Prec Ontario, they are talking about savings of up to 41.33 percent. For over 35 years, CPA4IT has been offering tax accounting and bookkeeping services to Ontario realtors and other professionals through the internet. They also provide free assessments to realtors to determine whether the property is suitable for resale.
- Stay online:
You need to stay on the current trends, and it will be the greatest way for realtors to get a competitive advantage in the field. And the technology will continue to advance at a quick pace. You should not only use social media to promote your services, but you should also use virtual specialists and programmes that provide specialized services such as payroll and social media analytics. Today, many teams provide an online calculator for calculating the projected tax savings of a PREC against a sole proprietorship for business owners. Business clients can utilize Smart Banking to grant multiple people access to their accounts and allow their accountant to get and examine monthly statements. It’s a useful option for customers to make transactions from the comfort of their own homes and gain access to more information.
- Financial Planning:
There are numerous chances to minimize taxes and maximize capital development when it comes to company structure. In the same way, you need a financial plan for your personal life, and you need to use planning tools and wealth techniques for your business to get the most out of all your hard work.
- Reduce incorporation fees:
When it comes to future expenditures or expenses, registering a PREC may raise some healthy reservations. Before you begin your PREC, you need to remember some things mentioned below.
- If it meets the requirements, you don’t have to register your PREC under the Trust in Real Estate Services Act, formerly known as the Real Estate and Business Brokers Act.
- You do not have to pay license costs every year.
- First, you need to consult a specialist familiar with the legislation to determine if a PREC is good for you. Realtors must distinguish their corporation from a personal service firm to profit from tax deferral and tax savings.
Thus, Ontario realtors will be good choices that provide you with maximizing your income and decrease expenses for your business.