Toronto Condo VVip . Should the house be bought in the name of the company or in the name of an individual? With the growth of the ranks and the increase of high-asset immigrants, people are taking a more long-term view, so some people are thinking about it.
Limited liability: first of all, as a form of business organization of a limited company, its great advantage is that shareholders only need to be responsible for the debts of the limited company with their own capital contribution.
For example, if you buy a property in a limited company and a tenant is crippled at your door, the court holds that it is your company’s responsibility. You only need to compensate until your company goes bankrupt and will not recover your personal assets. On the other hand, if you are the owner of the property, you will be liable for compensation with all your personal assets.
Transfer can be exempted from land transfer tax: if you buy a property in the name of the company, the company is the owner of the property. When you sell a property, you can do so by transferring shares in the company. In this way, there will be no change of ownership of the property, so there will be no land transfer tax.
The transfer procedure is relatively simple: as mentioned just now, if the property is in a limited company, when you sell the property, you only need to transfer the shares of the company. this procedure will be easier than the sale of the property. Especially when several people join hands in a property, when there is a disagreement, the shareholder who wants to sell only needs to transfer his shares.
It is more difficult to apply for a loan, and the process is more complicated: because your property is bought in the name of the company, then the housing loan has to be applied in the name of the company, which is generally more difficult than that of the individual. Banks often ask individuals to make guarantees.
Filing tax returns is more complicated and expensive: because you now have a limited company, you need to declare corporate tax in addition to personal income tax every year. Corporate tax is more complex and the cost is much higher than that of personal tax.