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Hi fellow real estate investors. I am hoping to get some advice in regards to incorporating and for others as well who are thinkin about the same thing. So here it goes....
I recently started looking into setting up a corporation for the various properties I own. Below are some of the links I found useful that provided some of the basics re incorporating and shared some good experiences. I recommend every to read these before setting up a corporation.
http://www.milliondollarjourney.com/rental-properties-to-incorporate-or-not-to-incorporate.htm
http://www.milliondollarjourney.com/private-canadian-corporations-and-taxes-the-basics.htm
http://www.milliondollarjourney.com/should-i-incorporate-my-small-business.htm
http://moneygrubbinglawyer.com/2008/08/06/should-i-incorporate/
After my research so far...in the end the decision to incorporate boils down to your individual situation. So here is mine....
I am 26yrs old. I own 2 rental properties. I live in one house and rent out part of it. The second is a duplex. In addition, I have a personal income of 65K/yr and growing. In 2yrs my personal income alone will be 150-200k/yr. So the income from rental properties is just going to drive my total income higher. Furthermore, I am looking into buying another rental property worth 500K (12unit apartment building)...so I think I am gonna make the tax man very happy unless I incorporate. The properties I have are in Ontario, but the new building I plan to purchase is in New Brunswick.
I haven't talked to a lawyer or an accountant yet because I want to be well prepared before I talk to them.
Given this situation...to me it looks like setting up a corporation would be a wise step especially since my own personal income is very high and I intend to keep buying more properties. I am willing to take the hit on the fees and transfer taxes to transfer everything into a corporation name. But I keep looking for any loop holes.
Any comments/advice would be greatly appreciated....please feel free to share your experiences…Thanks
I recently started looking into setting up a corporation for the various properties I own. Below are some of the links I found useful that provided some of the basics re incorporating and shared some good experiences. I recommend every to read these before setting up a corporation.
http://www.milliondollarjourney.com/rental-properties-to-incorporate-or-not-to-incorporate.htm
http://www.milliondollarjourney.com/private-canadian-corporations-and-taxes-the-basics.htm
http://www.milliondollarjourney.com/should-i-incorporate-my-small-business.htm
http://moneygrubbinglawyer.com/2008/08/06/should-i-incorporate/
After my research so far...in the end the decision to incorporate boils down to your individual situation. So here is mine....
I am 26yrs old. I own 2 rental properties. I live in one house and rent out part of it. The second is a duplex. In addition, I have a personal income of 65K/yr and growing. In 2yrs my personal income alone will be 150-200k/yr. So the income from rental properties is just going to drive my total income higher. Furthermore, I am looking into buying another rental property worth 500K (12unit apartment building)...so I think I am gonna make the tax man very happy unless I incorporate. The properties I have are in Ontario, but the new building I plan to purchase is in New Brunswick.
I haven't talked to a lawyer or an accountant yet because I want to be well prepared before I talk to them.
Given this situation...to me it looks like setting up a corporation would be a wise step especially since my own personal income is very high and I intend to keep buying more properties. I am willing to take the hit on the fees and transfer taxes to transfer everything into a corporation name. But I keep looking for any loop holes.
Any comments/advice would be greatly appreciated....please feel free to share your experiences…Thanks