Updated almost 5 years ago on . Most recent reply
Canadian business entiy
Hello BP! So glad I embarked on this real estate Journey. At this point in the game I am looking to learn as much as possible about the right business entity for my situation. I have found a partner who I have worked with on numerous Construction projects as an electrician. He has the capital to fund 100% of our projects. We have agreed to establish a company with 50/ 50% ownership. His only responsibility is to completely fund the total cost of the project. My responsibilities are: manage day-to-day operations, project manager / coordinator,GC, and all costing and budgeting for projects. At this point we are not looking to add any extra members except the two of us. We are getting ready to set up a meeting with the lawyer and a CPA. Our exit strategy at this point is to buy renovate, and re sell. We are looking to form a company that we can use too liability protect our personal assets and hold capital until reinvested. We would like to be able to pay ourselves after completion of a project by way of a dividend. Also our second option as an exit strategy is to use BRRRR and place asset in separate holding company.
Most of my education comes from webinars, podcast, YouTube, and audiobooks. Just finished Garrett Sutton's book Start your own corporation. GREAT BOOK! But it's US based and there is not a lot of audio books out there on Canadian business entities. The book had a lot of great points in it. So I guess my question is I'm looking for the Canadian equivalent to an LLC which is member-managed. From my research it's a limited company. If anyone has any material references which will help with my research. Or just some guidance on the subject would be greatly appreciated. I would like to be well-versed before our lawyer appointment. Thanks in advance.
