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What Are the Advantages of incorporating a Property?

There are many advantages to incorporating a property:

Limited liability protection

If you haven’t incorporated as a business and something unfortunate happens to a tenant or visitor on your property, you could be held personally liable for it. And depending on how bad it is, you could find yourself in serious debt or, worse yet, bankrupt. Having a corporation means that your assets and your business assets are separated. That means that your business would be liable, as opposed to you personally.

 

Tax advantages

Sometimes, just collecting rent on your property can put you into a tax bracket you’d rather be in. By having your business collect rent and paying yourself a salary out of that business, you can better control your tax payments. Furthermore, since you have a business now, you can write off all sorts of things, from purchasing a new refrigerator for a unit in your building to making repairs on the front door.