Can I set up a personal real estate corporation in Ontario?

Yes, a registered broker or salesperson can use a personal real estate corporation (PREC) in Ontario, but only if it follows strict rules. It must be incorporated under the Ontario Business Corporations Act and have one controlling shareholder, who is a registered broker or salesperson owning all the voting shares. That person must also be the president and the sole director and officer.

A PREC does not let the corporation trade on its own. It is exempt from registration and cannot trade in real estate in its own right, and the agent must remain employed by the brokerage. It may receive trading remuneration only from the brokerage, and the registrant must notify RECO of its legal name and address for service before any remuneration is received, then report changes within five days. Non-voting shares may be owned only by the controlling shareholder or their spouse, children, parents, or a trust for a minor child.

A brokerage is not obliged to agree to pay an agent's remuneration to a PREC. Whether incorporating makes sense for you tax-wise depends on your income and circumstances, so confirm it with an accountant and a lawyer before you start.