Incorporating Your Rental Property Business: Should You Do It?

There’s no one-size-fits-all answer. If you’re scaling up or need extra liability protection, incorporation might be a smart move. But for small landlords, the added cost and complexity may not be worth it.

🎯 Your best bet? Talk to a tax advisor or financial planner who can tailor a strategy to your specific situation.

At the end of the day, incorporation isn’t just about taxes—it’s about how big you want to grow, how much personal risk you can tolerate, and how you plan to structure your future.

✅ Go for Incorporation if:
✔️ You have (or plan to have) multiple properties generating significant income.
✔️ You reinvest profits rather than taking them out right away.
✔️ Liability protection is a key priority.
✔️ You’re thinking about estate planning or succession.

❌ Skip Incorporation if:
🚫 You own just one or two properties with modest rental income.
🚫 You rely on rental income immediately for personal expenses.
🚫 You don’t want the extra fees, accounting work, and legal complexities.

John Charboneau