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If you're a successful real estate agent or plan on being one in the future, opening a PREC could be for you.


We offer a unique service to realtors where we will open your PREC and provide expert financial planning and business advice.

Merrick Financial is the only PREC provider that understands the complex legal and financial rules and how they can best be applied to your situation. We can project your financial life (business and personal) into the future, advise you on how to tax efficiently invest your money in the PREC, advise you on how a PREC will affect your RRSP's, CPP, OAS, etc. We can also advise you on how the PREC will affect any family involvement with your real estate business.


After working with us you will be informed financially about how to use your PREC to its maximum potential and give you the maximum tax saving advantage. We will explain everything to you and answer all of your questions:

  • What are the main benefits of the PREC?

  • Should I take dividends or salary?

  • What should I do with the money in the PREC?

  • We will also tell you about and give you a written schedule on how to do the practical things - what are your government filing dates?

  • Can I use my existing bank account, accounting or bookkeeping service?


We are the one stop source for all information on deciding about and moving forward with setting up your PREC.  


Chris is very knowledgeable about the real estate business and owns numerous properties in Toronto. Being a real estate investor he is ideally suited to discuss how the PREC will affect your individual situation and understand the issues that realtors go through on a daily basis.


The competition for setting up your PREC is generally either a lawyer or accountant - the lawyer will set up the company but doesn't know about the financial aspects of your personal or business life. The accountant knows the financial rules but most of them are just interested in getting your yearly tax filing business (which is a corporate return now in addition to your personal one) and don't spend the time necessary for you to understand this big potential change with your business.

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Why set up a PREC?

  • Tax savings (12.2% with the PREC vs. 53.53% top personal rate)

  • Invest the tax savings in the PREC to further your gains

  • Possibly income split with your family

  • Use the PREC as a retirement vehicle

  • Allows for income smoothing - take out money when you want

  • Flexibility of payment - salary vs. dividends

  • Possible access to the lifetime capital gains exemption.

The New House

How does it work?

  • You are the 100% shareholder of the PREC and provide services as an employee to it. The PREC provides realtor services to the brokerage. 

  • You create, own, control and are responsible for the corporation. 

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Things to consider

  • Do you make more than you need to pay for your daily living expenses?

  • Income splitting opportunities - do you have family members who are involved in the business?

  •  Are you saving money for retirement and looking for a tax efficient vehicle? Do you plan on investing your money

  • Do the costs of having and maintaining a corporation outweigh the benefits?

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A PREC is not...

  • A PREC does not limit the professional liability of the controlling shareholder

  •  A PREC cannot carry on a business of trading in real estate other than providing the services of it controlling shareholder to the brokerage

  •  A PREC and its shareholders cannot represent to the public that the PREC carries on the business of trading in real estate

  •  A PREC cannot carry on business as a brokerage or hold any money or property of a client in connection with trading in real estate. 

Family Viewing House

What is a PREC and who can use it?

  • Is a separate legal entity from you 

  • It can own property, insurance policies and make investments

  • It can keep and accumulate money that you don't need for daily personal expenses. This additional money can be invested.

  • It owns the real estate business and you work for the PREC

  • It files its own tax, pays HST and has other filings separate from you

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Income splitting

  • If the realtor is age and older, can split dividends with the spouse 

  • If the realtor is below 65 - may split dividends with family members

  • Salaries can be given to family members for work performed

Glass Buildings


I enjoyed using Merrick Financial in the setting up of my PREC. They did an integrated plan of my personal life with my real estate life. I now feel confident moving forward and can now focus again on my specialty - property!

- The Armstrong Team


Ask us any and all questions you have about a PREC and how it will affect you. Complete financial advice for your individual situation along with the legal points.

Price - $300 plus HST


Can be credited towards the standard or advanced package if selected after the initial consultation.

 Company Incorporation  

Ask us any and all questions that you have about a PREC, how it works and how it will affect you.


Some of the main points will be advice on the best way to take an income from the PREC (salary vs. dividends) and what to do with the accumulated income in the PREC.


Also how the PREC will affect your retirement and the way that you operate as a realtor.



  • 2 x 1 hour meetings via video conference.

  • Advice on all of the ongoing legal requirements of your PREC, filing dates and other practical issues that no one tells you about.

Price - $1,300 plus HST

Advanced Package

Company incorporation and a full, detailed written financial plan for you and your business integrated together. Including financial management, risk management, investment planning, retirement planning, tax planning and estate planning. All integrated with your new company and projected into the future.


This will give you a detailed, professional view of what your PREC will look like now and in the future and show the many benefits of incorporation.


We can run numerous scenarios based on what you want to do with the PREC and determine the optimal one for you to work towards.


Price - $ 2,100 plus HST

Includes Standard Package Plus
Including Financial Advice
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