Clients, especially investor clients, often wonder whether they should incorporate for tax, liability or other reasons. Incorporation is a whole new wildcard from the realtors, mortgage brokers/lenders and lawyers positions. 

On the timing side of getting an incorporation done, it is way faster than it used to be. Technically, it can take two or three days if the lawyers have the necessary details (so timing is not usually a problem).

It's a whole different story on the financing side. As I understand it, the approval process and timing are quite different for someone buying personally than for someone who proposes to buy in a corporation (and I expect our mortgage brokers and lenders to weigh in with their comments). So, for any buyer's realtor where the buyer is thinking about a corporate purchase, get your buyer to speak to their mortgage broker or lender IMMEDIATELY! 

As a lawyer, clients often ask me, "should I incorporate"?

There are a couple of considerations:

1. Have you spoken to your mortgage broker/lender about how the approval process and timing works for a personal purchase versus a corporate purchase? 
2. Have you spoken to your accountant?

I want the buyers to speak to their accountant, who understands their current situation and their plans for the future. That information enables the accountant to recommend whether or not to incorporate. Should the recommendation be incorporation, then the lawyer's job is to work with the accountant to set up the structure.

For all the realtors out there, the question of whether to incorporate is usually complicated and time-consuming. Refer to these questions to the buyers' mortgage broker/lender and accountant. You should not take on this aspect of advising.

Protect yourself.

Cheers,

Barry

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