Canadian with Canadian questions

[Colin Girard]

Hey Guys, 

I've been lurking for a bit but thought I would make my first post with a question I have (any others probably do as well) and maybe consolidate some of the questions/differences us Canadians deal with compared to situations in the US. Some background on me, I live in a small resort town in BC Canada. About 10-15 min away there is a large smelter that employ's a large percentage of the population here and in the surrounding area. Due to the resort town/work situation, prices are a bit nuts here. Houses that need to be gutted and renovated go for 250k+. Last year, my Wife and I purchased our first rental after wanted to get into the market for a while. It is a small apartment but has done quite well so far. I'm currently looking for our next property as well as educating myself on the business side to set us up for success in the future.

So what I'm wondering is.... an LLC. I've talked to accountants have been advised basically not to do it. I was told that it is investment income and when held in a corporate environment the tax is punitive as it is considered sheltering and will be taxed at highest tax rates which are comparable to my personal tax rates. What do you guys do? I'm already in a pretty high tax bracket and stand to lose a fair amount of my rental come due to this. Short of buying stuff to write off, how do I keep my rental income liquid and easy to access for future investments? Thanks!