14) Holdco Registration
Holding Companies
For self-employed people, it can sometimes be beneficial from a tax perspective to purchase a property using a corporation, commonly referred to as a “Holding Company” (Holdco for short).
For investors that purchased under a holdco, it must be extra-provincially registered in Alberta before closing.
Your lawyer can do this for you and it should cost around $1000 and only takes a few days.
There are annual filing requirements in the province of Alberta and you should talk to your lawyer if they can manage this for you.
Consider A Holdco?
For the majority of people, it is better to own the property under your personal name versus under a corporation. Each person’s situation is unique so consult with a professional accountant to determine if using a holdco is right for you.
