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**UNITED STATESSECURITIES ANDEXCHANGE COMMISSIONWashington, D.C. 20549**

          

**FORM 10-K/A-1**

(Mark One)

:

ANNUAL REPORT UNDER  SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

**For the fiscal period ended December 31, 2008          **

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TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ________to _______

     Commission File  Number: **000-49768 **

**PREFERENTIAL EQUITIES  CORP.**

(Name of small business issuer in its charter) 

**Nevada**

**91-2015980                                      **

(State of other jurisdiction of incorporation or  organization)

(I.R.S. Employer I.D. No.) 

**P.O.    Box 741, Bellevue,   WA**

**98009**

(Address of principal executive offices)

(Zip Code)

  Issuer's telephone number **  ****(425) 453-0355**

Securities Registeredunder Section 12(b) of the Exchange Act:                **None**      

Securities Registeredpursuant to Section 12(g) of the Act:****

Title of each class

Name of each exchange on which registered

**Common Stock $0.001 par value per share**

**NOT APPLICABLE**

Securities Registeredunder Section 12(b) of the Exchange Act:                **None**      

Securities Registeredpursuant to Section 12(g) of the Act:****

Title of each class

Name of each exchange on which registered

**Common Stock $0.001 par value per share**

**NOT APPLICABLE**

Indicate by check mark if the registrant is awell-known seasoned issuer, as defined in Rule 405 of the Securities Act.

                                                                                                                                                                                9Yes     :No

Indicate by check mark whether the issuer is notrequired to file reports pursuant to Section 13 or 15(d) of the Act   

                                                                                                                                                                                   9Yes     : No

Indicate by check mark whether the Registrant (1)filed all reports required to be filed by Section 13 or 15(d) of the 

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Securities Exchange Act of 1934 during the preceedingpast 12 months (or for such shorter period that the Registrant was required tofile such reports) and (2) has been subject to such filing requirements for thepast 90 days.

                                                                                                                                                                                :Yes     9 No

Indicate by check mark if disclosure of delinquentfilers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not containedherein, and will not be contained to the best of registrant's knowledge,in definitive proxy or information statements incorporated by reference in PartIII of this Form 10-K or any amendment to this Form 10-K.                                                                                                                                                                                                              :  

Indicate by check mark whether the registrant is a alarge accelerated filer, an accelerated filer, a non-accelerated filer, or asmaller reporting company. See the definitions of “large acceleragedfiler,” “accelerated filer” and “smaller reportingcompany” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

9

Accelerated filer

9

Non-accelerated filer

9

(Do not check if a smaller reporting company)

Smaller reporting company

:

Indicate by check mark whether the registrant is ashell company (as defined in Rule 12b-2 of the Exchange Act)

                                :  Yes 9 No

State Registrant's revenues for its most recent fiscalyear:  **$0**

State the aggregatemarket value of the voting and non-voting common equity held by non-affiliatescomputed by reference to the price at which the common equity was sold, or theaverage bid and asked prices of such common equity, as of  last  business day of the registrant'smost recently completed second fiscal quarte.

                   **Not****e** – If a determination as to whether a particularperson or entity is an affiliate cannot be made without involving unreasonableeffort and expense, the aggregate market value of the common stock held bynon-affiliates may be calculated on the basis of assumptions under thecircumstances, provided that the assumptions are set forth in this Form.  

**APPLICABLEONLY TO REGISTRANTS INVOLVED IN BANKRUPTSY PROCEEDINGS DURING THE PRECEDEINGFIVE YEARS:**

Indicate by checkmark  whether the registrant hasfiled all documents and reports required to be filed by Section 12, 13 or 15(d)of the Exchange Act subsequent to the distribution of securities under a planconfirmed by a court.    **N/A**

                 Yes 9    No 9

**(APPLICABLEONLY TO CORPORATE REGISTRANTS)**

Indicate the number of shares outstanding of each ofthe Registrant's classes of common stock, as of the latest practicable date.

5,000,000 commonshares issued and outstanding as of December 31, 2008.

**DOCUMENTS INCORPORATED BY REFERENCE**

None.

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**EXPLANATORY NOTE**

Inconnection with our annual report on Form 10-K for the year ended December 31,2008, we are filing this Amendment No. 1 to amend the following information:
- We have amended our discussion in     Item 9A Controls and Procedures to identify the framework used by     management to evaluate the effectiveness of our controls over financial     reporting; and
- Amend Exhibit 31.1 and 31.2, the     certification of our principal executive officer/principal financial     officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the     Securities and Exchange Act of 1934.

Inaccordance with Rule 12b-15 under the Securities Exchange Act of 1934, asamended (the “Exchange Act”), each item of the Original Filing thatis amended by this Amendment No. 1 is restated in its entirety, and thisAmendment No. 1 is accompanied by currently dated certifications on Exhibit31.1, 31.2, 32.1 and 32.2.

Except as expressly set forth in this AmendmentNo. 1, we are not amending any other part of the Original Filing.  ThisAmendment No. 1 continues to speak as of the date of the Original Filing, exceptas such disclosure is amended by this Amendment No. 1, and does not reflectevents occurring after the filing of the Original Filing, or modify or updateany related or other disclosures, including forward-looking statements, unlessexpressly noted otherwise.  Accordingly, this Amendment No. 1 should beread in conjunction with the Original Filing and with our other filings madewith the SEC subsequent to the filing of the Original Filing.  The filingof this Amendment No. 1 shall not be deemed an admission that the OriginalFiling when made included any untrue statement of a material fact or omitted tostate a material fact necessary to make a statement not misleading.
**ITEM 9A. CONTROLSAND PROCEDURES.**
***(a) Evaluation of Disclosure Controls andProcedures***

Disclosure controls are controls and procedures thatare designed to ensure that information required to be disclosed in our reportsfiled under the Exchange Act is recorded, processed, summarized and reported,within the time periods specified in the SEC's rules and forms. Disclosurecontrols and procedures include, without limitation, controls and proceduresdesigned to ensure that information required to be disclosed by a Company inthe reports that it files or submits under the Exchange Act is accumulated andcommunicated to the company's management, including its principal executive andprincipal financial officers, or persons performing similar functions, asappropriate to allow timely decisions regarding required disclosure. 

Our management carried out an evaluation (with theparticipation of our CEO and CFO), of the effectiveness of the design andoperation of our disclosure controls and procedures pursuant to Rules 13a-15(e)and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act").Based upon that evaluation, the Company's CEO and CFO have concluded that theCompany's disclosure controls and procedures were effective as of December 31,2009.

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******
***(b) Internal control over financial reporting***

*Management's annual report on internal control over financialreporting*

Management is responsible for establishing andmaintaining adequate internal control over financial reporting as defined inRules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control overfinancial reporting is intended to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statementsfor external purposes in accordance with U.S. GAAP. Our internal control overfinancial reporting should include those policies and procedures that:
- pertain to the maintenance of     records that, in reasonable detail, accurately and fairly reflect the     transactions and dispositions of our assets;
- provide reasonable assurance     that transactions are recorded as necessary to permit preparation of     financial statements in accordance with applicable GAAP, and that receipts     and expenditures are being made only in accordance with authorizations of     management and the Board of Directors; and
- provide reasonable assurance     regarding prevention or timely detection of unauthorized acquisition, use     or disposition of our assets that could have a material effect on the     financial statements.

Because of its inherentlimitations, internal control over financial reporting may not prevent ordetect misstatements. Also, projections of any evaluation of effectiveness tofuture periods are subject to the risk that controls may become inadequatebecause of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.

As required by Rule 13a-15(c) promulgated under theExchange Act, our management, with the participation of our Chief ExecutiveOfficer ("CEO") and Chief Financial Officer ("CFO"),evaluated the effectiveness of our internal control over financial reporting asof December 31, 2009. Management's assessment took into consideration the sizeand complexity of the company and was based on criteria set forth by theCommittee of Sponsoring Organizations of the Treadway Commission in InternalControl over Financial Reporting -Guidance for Smaller Public Companies. Inperforming the assessment, management has concluded that our internal controlover financial reporting was effective as of December 31, 2009.

*Attestation report of the registered public accounting firm*

This annual report does not include an attestationreport of the company's registered public accounting firm regarding internalcontrol over financial reporting. Management's report was not subject toattestation by the company's registered public accounting firm pursuant totemporary rules of the Securities and Exchange Commission that permit thecompany to provide only management's report in this annual report.

*Changes in internal control over financial reporting*

There were no changes in our internal controls thatoccurred during the year covered by this report that have materially affected,or are reasonably likely to materially affect our internal controls.

*Changes in Internal Controls*

Based on the evaluation as of December 31, 2009, HarryMiller, our President, Chief Executive Officer, and Chief Financial Officer hasconcluded that there were no significant changes in our internal controls overfinancial reporting or in any other areas that could significantly affect ourinternal controls 

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subsequent to the date of his most recent evaluation,including corrective actions with regard to significant deficiencies andmaterial weaknesses.
**ITEM 9A(T) –CONTROLS AND PROCEDURES**
See Item 9A – Controls andProcedures above.
**PART IV**
**ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES ANDREPORTS ON FORM 8-K**

**Exhibit    Number**

**Exhibit  Title**

31.a

Section 906  Certificate of CEO

31.b

Section 906  Certificate of CFO

32.a

Section 302  Certificate of CEO & CFO

The Board of Directors has pre-approved specifically identifiednon-audit related services, including tax compliance, review of tax returns,documentation of processes and controls as submitted to the Board of Directorsfrom time to time.
**SIGNATURES**
In accordance with Section 13 or 15(d) of the Exchange Act, theregistrant caused this report to be signed on its behalf by the undersigned,thereunto duly authorized. 

                                                

**  PREFERENTIAL EQUITIES CORP.**

/s/ Harry Miller

 By:  

   Harry Miller, President, CEO, Secretary, Treasurer, CFO,     Principal Accounting Officer and  sole Director

Date:

   February 12, 2010

                                    

In accordance with the Exchange Act, this report has been signed belowby the following persons on behalf of the registrant and in the capacitiesindicated, on February 12, 2010.

 
   /s/ Harry Miller
 By:  

 Harry Miller, President, CEO, Secretary, Treasurer, CFO,     Principal Accounting Officer and  sole Director

Date:

   February 12, 2010.

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