Posted by: Gordon Holtner ®
04/05/2005, 10:19:09
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The only reason I can think of that a person would
use a company for in Canada to do real estate investing is for a limited liability company in the event that you are using it to get properties from seniors who have no mortgages by agreement for sale because they couldn't turn around and sue you if run your rentals badly and can't complete the contract beacause it protects your assets from the debt of the company. This is also good for mortgages as long as your company is established and the banks want to lend you money without a personal guarantee. Owners of companies can be sued personally for negligent actions however. At least that is what I read in an incorporation guide for Alberta. I think that there are some tax advantages to using corporations but like every one else here should get the advice of a qood accountant, that is unless you are one!
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