As a real estate professional you’re forced to collect income on your sales as a self-employed individual. As the market fluctuates you might earn a high income in one year and a much lower income the next. So if you earn over $136,270 in any one year you’re forced to pay over almost HALF of every extra dollar you earn in tax – whether or not you need the income at that time.
When you incorporate your business you get the option to delay receiving that personal income. You can retain money that you don’t need in your company, and you won’t pay any additional tax until you draw out those funds as a salary or dividend.
Tax deferral is even more beneficial for real estate brokers than other business owners, because of the cyclical nature of your business. In high-income years the company can retain your excess income, paying out only what you and your family need. Then in quiet years, when you need the funds, you can draw them out and generally pay a much lower rate of personal tax.
Of course, the Real Estate Council of Ontario (RECO) won’t allow you to incorporate your business unless you set up a brokerage. And the thought of all the cost and hassle involved is enough to stop many Realtors in their tracks.
• There’s so much to do to establish a brokerage, where do I even start?
• Can I afford all the costs of running a brokerage all on my own?
• Will I have time to run an office and still concentrate on selling real estate?
Realty Point has the right solution for you.
We provide an innovative franchise solution that takes care of all those worries. We manage everything involved in setting up and running your brokerage, so all you have to do is sign.
We provide smart private offices, skilled staff and state-of-the-art facilities, for a fixed low cost.
And we handle all your ongoing administration, from answering calls to reconciling your accounts – so you can get on with doing what you do best.
Contact us today for your confidential free consultation.
Realty Point. You Sell Real Estate. We Take Care of The Rest.
ShareSEP