Setting up a new business: sole proprietorship, partnership or company?
New business owners are faced with a myriad of decisions to make, one of the most important decisions they face is choosing the most appropriate entity for their business operations. This is no easy task, seeing that each entity type, whether a sole proprietorship, partnership or a company has its own unique characteristics, which also have corresponding tax consequences.
Once the business owner has decided on the appropriate entity form, it may be that a voluntary VAT registration could benefit this newly established business (minimum requirement of R50,000 turnover per year). A Compulsory VAT registration will be relevant when the expected turnover of the business exceeds R1000,000. In addition to VAT registration, SARS also requires other compulsory registrations that include, among others, income tax and PAYE registrations.
At SGN Konsult we provide support and advice to help you with the decision-making when it comes to choosing an entity. We will ensure that you enjoy the maximum tax benefit, either short term (progressive tax) or in the long term (by minimizing estate duty or capital gains tax). Please contact us for advice and guidance in this regard.
The SGN Konsult team
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