Power team help: Looking for referral to an investor oriented lawyer.

TylerH

Inspired Forum Member
REIN Member
Hi all, new member here and this is my first post! I'm currently incorporating a contracting business in the Edmonton area. This company will serve as the hammer and nails side of my coming real estate empire:) Anyway, I need some guidance for setting it up with the future in mind. If anyone has a contact for a lawyer they would like to recommend that would be profoundly appreciated.
Thanks for your time!
 

Thomas Beyer

Senior Forum Member
REIN Member
Why do you need a lawyer for this?

Try arvic.com

Are there multiple shareholders? Complicated relationships to be aware of? Millions of $s invested up front?

A simple corp suffices.

Give yourself 1M class A voting shares for $100 or 0.01 cent each. Plus a few non-voting share classes and pref shares as an option for later.

Amend later once empire grows.

You also need a corp number and GST number from CRA.

Yours kindly,

Thomas Beyer, Founder & Director
E: Thomas at riversidetownhomes dot ca
www.riversidetownhomes.ca

PS: Be Kind. Be Safe. Be Calm. Be Positive.
 
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TylerH

Inspired Forum Member
REIN Member
Thanks for the reply!

My main concern was that I would set up a structure that would be counter productive in the event that I end up with a holding co or something more complex later.

But you make a great point. Nothing complicated about it right now and the legal fees would be higher than the company's valuation at this stage!

I appreciate that guidance.
 

Thomas Beyer

Senior Forum Member
REIN Member
What is the goal here?

Kids or non-working spouse or parents with shares ie dividends eventually?

Any passive real estate in it say a long term rental property as opposed to a reno and flip project ?

Lawyers don’t give biz advice!

If you have an active firm you need a GST number and active (ie RE flipping or services) revenue. All profit is taxed. But if you have less than $500,000 in income you usually pay sub 20% in taxes (federal and provincial combined)


https://www.canada.ca/en/revenue-ag...opics/corporations/corporation-tax-rates.html

As you see it gets complicated fast so a tax accountant is far more relevant once you have a few properties to flip or services invoices.

Yours kindly,

Thomas Beyer, Founder & Director
E: Thomas at riversidetownhomes dot ca
www.riversidetownhomes.ca

PS: Be Kind. Be Safe. Be Calm. Be Positive.
 

TylerH

Inspired Forum Member
REIN Member
Thanks again Thomas. I'll check out that link. The goal is to do the brrr method on single family homes developing suites (or whatever is the highest best use) partnering with investors. I have done a few suites as a sole proprietor but wanted to be positioned to market myself to others. I'd like to be set up to partner with others in JV's or perhaps limited partnerships but that falls outside of the purpose of the current company I'm setting up (as far as I can tell).
Eventually, yes the goal is to be able to include my kids in the ownership structure of this massive empire:)

For this reason I would still love to get connected with an amazing lawyer in the edmonton area, although as you pointed out it is not urgent for today; but more for the setting up of a great power team.
 

Matt Crowley

Senior Forum Member
REIN Member
For small projects, keep costs down and contracts simple. Barry McGuire used to have a binder with contract docs or maybe it is still in the ACRE material. Really all you need. The pie is pretty small for SFH, so don't layer in any additional costs.

JV contracts work fine. Also LP / GP structure which is a lot more common in RE. Depends what you are more comfortable with.
 
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