On October 1st, 2020, the Provincial government implemented new rules in Ontario allowing Realtors® to form a Personal Real Estate Corporation (PREC). PREC’s allow Realtors® to access the business advantages of incorporation, including tax and income planning benefits.
The Ontario Real Estate Association (OREA) has created a website with resources to assist Members whom are interested in forming a PREC; https://www.orea.com/Political-Advocacy/Personal-Real-Estate-Corporations
A new Agent will need to be configured in both Showings and/or Commissions applications as applicable. Personal Real Estate Corporations require a new HST registration number.
In Showings, enter the Personal Real Estate Corporation name in both “Company” & “Does Business As” on the Details tab of the Phone List.
In Commissions, once imported from Showings you simply need to change the Payee = Company and complete the rest of the details as usual.
If you do not integrate with Showings, you will need to set up a new Agent in Commissions.
Please note, if you have paid the agent previously as an individual, be mindful to select the correct name moving forward as Agents will receive a T4A as an individual and a corporation for the calendar year in which they became a corporation.
Finally, if integrating with QuickBooks© please remember to change any memorized invoicing, outstanding customer balances, etc. to the new name if required.