Wholesaler · EDMONTON, AB · Member since 2016 · 16 posts · 1 vote
Hello fellow investors.
my specialization is in Rent to own and wholesaling.
I have been talking to a lot of sellers lately and i'm close to closing a deal.
While I work on that, I'd like to know how other experienced Canadian investors set up their business in a legal and tax friendly way.
I took an American course and they recommend setting up an LLC, which in Canada is an LLP. The only problem is that it's for lawyers and accountants.
The closest one would be a limited partnership or sole proprietorship. Since I don't have a partner and it's just me, what would you recommend I get set up with. I am in talks with a lawyer who charges $500/hour for consultation, which I can't afford right now.
I'm aware you can always change your legal structure down the road, but I'll rather do it right at the beginning, without spending too much money.
So I'd like to hear what your recommendations are.
How is your business set up? Is it as a sole proprietorship or corporation?
also would you recommend using an accountant since I can set up a basic one to start with on the government website.
Thanks
We are incorporated, but only because it best fit our situation. I would advise you sketch out your objectives (near, mid, & long term) and spend few hundred dollars on an accountant who specializes in real estate to help you select the structure which best fits your needs (near and mid-term), but which can be transformed as necessary to meet your long-term goals.
Great question Adeola, I'm based in Airdrie, Ab and would love to hear what others suggest. Just starting out and looking to get paperwork setup correctly as well.
How is your business set up? Is it as a sole proprietorship or corporation?
also would you recommend using an accountant since I can set up a basic one to start with on the government website.
Thanks
We are incorporated, but only because it best fit our situation. I would advise you sketch out your objectives (near, mid, & long term) and spend few hundred dollars on an accountant who specializes in real estate to help you select the structure which best fits your needs (near and mid-term), but which can be transformed as necessary to meet your long-term goals.
I agree with Roy's comments. I haven't dealt with RealFile CPA personally, but they were just recommended to me by a mentor. I would love to connect about properties you are looking to wholesale and let you know what we are looking for. Hopefully we can connect. Thanks and have a great day,