Investing Through a Corporation: Should You Incorporate?

Should you buy investment properties in your personal name—or through a corporation? It’s one of the most common questions Canadian investors ask.

In this blog, we explore the pros, cons, and myths of incorporating, so you can decide what structure works best for your portfolio.

1. What Are the Benefits of Incorporating?

a) Liability Protection

Your corporation is legally separate from you, which can offer protection in case of lawsuits or tenant issues.

b) Potential Tax Deferral

Corporate tax rates (12–15%) are often lower than personal rates. This allows you to reinvest more capital back into your portfolio.

c) Professional Appearance

Some lenders, JV partners, and sellers see a corporation as more serious or credible.

2. The Downsides of Incorporating

• Higher startup/legal costs

• Ongoing filing requirements (taxes, bookkeeping)

• Mortgage options are more limited and rates may be higher

  
  

Investor Tip: Always work with an accountant who specializes in real estate incorporation. It’s not one-size-fits-all.

3. When Incorporation Makes Sense

• You’re planning to scale past 3–5 properties

• You want to separate multiple JV partnerships

• You’ll keep profits inside the company to reinvest

  
  

4. When Personal Ownership May Be Better

• You're just starting out with one or two units

• You need access to best mortgage rates

• You’re not keeping long-term profits in the business

  
  

  

  
  

Final Thoughts

Incorporating isn’t just about taxes—it’s about strategy. Make sure your decision aligns with your investment goals, financing needs, and scale ambitions.

Greenell Capital helps investors assess the right ownership structure for their portfolio—now and into the future.