- Joined
- May 9, 2013
- Messages
- 53
Situation:
I have an Ontario corporation "Realco" which I have used to purchase two properties (solely in Ontario, total value of about $750k). Can I use this same corporation to purchase real estate in Alberta?
When I asked George Dube this question, this was his response:
From a tax perspective, yes, we can handle multiple provinces within the same corporation. Although we typically see, provided there is enough real estate to justify it, a separate corporation for each relevant province. I'd also ask you to check with your lawyer as if you're going to use the same corporation, because as I understand it, you would need to be registered to do business in the applicable provinces, and the fees can be $750 to $1000 depending on the province. But again, please check with your lawyer as well.
Questions:
1) What would be the threshold before I should consider opening a new corporation (as per George's comments)? What is the recommended approach in order to have benefit/flexibility, but without excessive fees/overhead?
2) Would this new corporation be an Ontario corporation that holds Alberta real estate, or would this be an Alberta-registered corporation?
3) Can my Ontario parent holding company "Parentco" (which owns "Realco") also own this new Alberta corporation?
4) Can my existing Ontario-based lawyer (Shayle Rothman) handle opening up Alberta corporations and the purchase of Alberta-based property? Or do I need an Alberta lawyer (e.g. Barry McGuire / Ritchie Mill Law Office) for this?
Related:
The properties that I'm looking at buying are 15-20 suite apartments in Edmonton. If purchased with a JV, would you recommend opening a new corporation whose sole purpose is to own this property? (and then just issue Class A voting and Class B non-voting shares, as per Thomas' previous posts).
I'm trying to understand the pro/cons of different ownership structures. Is there a good post on myREINspace that describes this?
I have an Ontario corporation "Realco" which I have used to purchase two properties (solely in Ontario, total value of about $750k). Can I use this same corporation to purchase real estate in Alberta?
When I asked George Dube this question, this was his response:
From a tax perspective, yes, we can handle multiple provinces within the same corporation. Although we typically see, provided there is enough real estate to justify it, a separate corporation for each relevant province. I'd also ask you to check with your lawyer as if you're going to use the same corporation, because as I understand it, you would need to be registered to do business in the applicable provinces, and the fees can be $750 to $1000 depending on the province. But again, please check with your lawyer as well.
Questions:
1) What would be the threshold before I should consider opening a new corporation (as per George's comments)? What is the recommended approach in order to have benefit/flexibility, but without excessive fees/overhead?
2) Would this new corporation be an Ontario corporation that holds Alberta real estate, or would this be an Alberta-registered corporation?
3) Can my Ontario parent holding company "Parentco" (which owns "Realco") also own this new Alberta corporation?
4) Can my existing Ontario-based lawyer (Shayle Rothman) handle opening up Alberta corporations and the purchase of Alberta-based property? Or do I need an Alberta lawyer (e.g. Barry McGuire / Ritchie Mill Law Office) for this?
Related:
The properties that I'm looking at buying are 15-20 suite apartments in Edmonton. If purchased with a JV, would you recommend opening a new corporation whose sole purpose is to own this property? (and then just issue Class A voting and Class B non-voting shares, as per Thomas' previous posts).
I'm trying to understand the pro/cons of different ownership structures. Is there a good post on myREINspace that describes this?
