HomeAbout / Our TeamServicesWho We ServeInsightsContact Book your consultation
For Ontario Realtors · PREC Planning

You've built a thriving real estate business. Now build the wealth to match.

A Personal Real Estate Corporation lets top-producing agents defer tax, invest retained commissions, and finally build wealth like the business owners they are. We'll show you exactly what it means for your numbers.

Trusted by brokers and top producers across the GTA.

30%+of commission can stay invested, deferred, inside a PREC
The realtor's dilemma

Your income is lumpy. Your tax bill isn't forgiving.

Most agents earn well but keep too little — taxed personally at the top rate, with no structure to smooth the swings or shelter what they don't spend.

Top personal tax rates

Every dollar over the threshold is taxed at 53.53% in Ontario — whether you needed it this year or not.

Feast-and-famine income

Big years and quiet years average out badly when there's no way to smooth income across them.

Nothing left invested

After tax and lifestyle, the surplus that should compound into wealth never gets the chance.

The opportunity

What a PREC actually changes.

Since October 2020, Ontario realtors have been able to receive commissions through a Personal Real Estate Corporation — the same advantage incorporated professionals have used for decades.

Instead of every commission landing in your personal hands at the top marginal rate, it can flow into your corporation, taxed at the much lower small-business rate. The difference stays invested and working for you.

You draw what you need to live. The rest compounds inside the corporation, on a tax-deferred basis, until you choose to take it out — ideally in lower-income years or retirement. That's the entire idea, and for high earners it's transformative.

Why it matters

Four advantages, properly structured.

01

Tax deferral

Pay the lower corporate rate on retained income now, and defer personal tax until you withdraw — often years later, at a lower rate.

02

More invested capital

Keep tens of thousands more dollars compounding each year instead of going to tax today.

03

Income smoothing

Draw a steady, predictable personal income regardless of whether the market gave you a record year or a slow one.

04

Long-term wealth

Build the investment base most agents never accumulate — and a plan for life beyond the next deal.

Is a PREC right for you?

It's worth a serious look if you:

  • Consistently earn more than you spend each year
  • Are taxed near the top personal bracket
  • Want to invest, not just earn and spend
  • Have an irregular, commission-based income
  • Are planning for retirement or a future slowdown
  • Want a structure that grows with your business

Not sure where you land? That's exactly what a complimentary consultation is for — we'll run your numbers and tell you plainly.

How we help

From decision to done.

We coordinate the tax, legal, and investment pieces so you don't have to project-manage your own incorporation.

  1. 01

    Run the numbers

    A clear, personalized model of what a PREC saves you — and whether it's worth it yet.

  2. 02

    Set up the structure

    We coordinate incorporation, RECO registration, and the accounts you'll need.

  3. 03

    Invest the surplus

    A portfolio for your retained earnings, built to your timeline and risk.

  4. 04

    Review every year

    Compensation, drawdowns, and strategy revisited as your business grows.

As a realtor, my income is lumpy and seasonal. Armando built a PREC strategy that finally let me invest like the business owner I am — and I sleep better in the slow months.

MH
Marisol HerreraBroker · PREC client since 2022
Common questions

PREC questions, answered plainly.

How much do I need to earn for a PREC to make sense?

There's no hard threshold, but the advantage grows once you're consistently earning more than you spend and are taxed near the top bracket. We'll model your specific situation before you commit to anything.

Does a PREC reduce the total tax I pay?

Primarily it defers tax — you pay the lower corporate rate now and personal tax later, ideally when your income is lower. Combined with income splitting and investment growth, the long-term benefit can be substantial.

Is setting one up complicated?

There are specific RECO and tax requirements, but you won't manage them alone. We coordinate the incorporation, registration, and investment setup as one process.

Can I still pay myself a normal income?

Yes. You draw the salary or dividends you need to live, and the surplus stays invested in the corporation. Structuring that mix tax-efficiently is a core part of what we do.

What does it cost to work with Armando?

The first consultation is complimentary. If you proceed, we'll lay out fees transparently up front — no surprises, no commission-driven products.

Free download

The Realtor's PREC Playbook

A plain-language guide to deciding on, setting up, and getting the most from a Personal Real Estate Corporation. Straight to your inbox.

A standing invitation

Let's run your numbers.

A complimentary, no-obligation conversation about whether a PREC is right for you — and what it could mean for your wealth.

1 King Street West, Suite 4800, Toronto, ON·