A Personal Real Estate Corporation (PREC) is a corporation that real estate professionals in Ontario can form to conduct their business. In this arrangement, the real estate professional becomes the “controlling shareholder” of the corporation, giving them control over the corporation and its activities. Benefits of Forming a PREC: Forming a PREC can offer financial benefits to a real estate professional. It provides more flexibility in income management, which could potentially lead to tax savings. However, the specific benefits can vary depending on the individual’s business situation. Function of a PREC: The primary function of a PREC is to provide the services of the real estate professional, who is the main shareholder, on behalf of the brokerage they work for. It’s crucial to note that a PREC cannot operate independently like a brokerage.