Incorporate in Ontario or Alberta ?

[ekisielewski]

I am considering incorporating a Holding Company to add investment properties to my portfolio. I currently invest in both provinces.

Since Alberta is more investor friendly and taxes are lower would it be better for the company to be registered in Alberta even if in the future some properties are bought in Ontario. Other considerations?

Any advice is appreciated

Thank you

Elisabet K.

 

[invst4profit]

What is your purpose or goal in Incorporating?

How many employees do you have?

 

[ekisielewski]

Hi: for Financing purposes. According to mortgage broker this would be a way of accessing programs lenders have for investment properties held under a Holding Company only

Thnaks

 

[Thomas Beyer]

It does not matter much unless you intend to keep profits in the corporation and profits are expected to be over $100,000 per year for many years, as Albeta taxes are 5-8% lower on the top end of the range. If you take profits out after a sale then you are taxed personally wherever you live ( presumably Ontario).

 

[ekisielewski]

Thanks Thomas for your input. This makes sense. I just finished sending you an email to your company website