Someone else is joining the corporation. What do the articles say?

A share structure written for one person

Most PRECs are incorporated for a single registrant, because that is the situation on day one. The share structure reflects that. When a second registrant joins, the question stops being about you and becomes about how the two of you hold the corporation between you.

The articles are the layer underneath the agreement

People often reach for a shareholders agreement at this point, and that is the right instinct. But the articles sit underneath it, and if they were drafted for one person they may simply be silent on the arrangement you are now describing.

What the check will and will not tell you

It reads what your articles actually say and rates how well they are drafted to protect PREC status. It does not tell you how to structure the relationship between two registrants. That is a conversation for your lawyer, and it goes faster when you arrive knowing what you already have.

How to check yours

The PREC Articles Health Check is free. You upload or paste your articles of incorporation and it reads them against both regimes that govern a PREC: the RECO registration conditions in Ontario Regulation 536/20, and the Canada Revenue Agency rules that decide how the corporation is taxed.

You get a Red, Yellow or Green rating for each regime, with every requirement named and what was actually found in your text. There are no forms to fill in.

Your articles are analysed in your browser. The document is never uploaded, stored, or sent to Capital Toolkit.

What it is, and what it is not

The Health Check produces a drafting-quality hint from the article text you provide. It is a starting point to bring to a qualified lawyer and CPA, not a legal finding that your corporation qualifies as a PREC, and not tax advice. Always have a professional review before you rely on or file anything.

It does not replace your lawyer or your accountant, and it is not meant to. It is meant to make the conversation with them shorter and sharper: you arrive knowing where your articles stand and which protections need attention, instead of paying for that discovery from scratch.

If you want the full analysis

The rating and the list of which protections are present or missing cost nothing. What is paid for is the PREC Deep Dive at $1,000 CAD: the full clause-by-clause written analysis of what is wrong, why it matters, and what to raise with your lawyer. HST is added at checkout.