![]() Not only the investment, but any personal and real property may be attached by creditors. Unlimited liability for the owner The individual owner is legally liable for all the debts of the business.Some disadvantages of a sole proprietorship are: The business has a minimum of legal requirements.Some advantages of a sole proprietorship are: The proprietor assumes the risks of the business to the extent of all his or her assets whether used in the business or personally owned. Only the proprietor has the authority to make decisions for the business. However an important element in your decision will be the tax consequences of each type of entity.Ī sole proprietorship is a business that is owned by one person.This is the simplest form of business organisation.The business has no existence apart from the owner who is called the proprietor. Once you have decided to start a business you must decide what type of business entity to use.There are legal and tax considerations that will enter into this decision The legal considerations are beyond the scope of this guide. Initial considerations when organising the business If it does not give the answer to your own tax problem, your local Receiver of Revenue will be pleased to help you. This guide is only a general guide and does not try to deal with every aspect that can arise. However this guide does not discuss insurance companies, banks, investment companies, trusts, fishing or farming enterprises. The information in this publication applies to many different kinds of businesses. This helps to illustrate the specific tax considerations for each of the flour different business Organisations Part III contains an explanation of income tax and some of the other taxes you may have to pay in addition to income tax. Part II discusses various aspects of record keeping, including an explanation of net profit or loss. This first edition of "Tax Guide for Small Business" is divided into three parts, The first part contains general information on business organisation and registration. It describes the four major forms of business organisations - sole proprietorship, partnership, close corporation and private company - and explains the tax responsibilities of each. This guide contains in formation about the tax laws that apply to businesses. Income Tax Close Corporations & Companies Income Tax - Sole proprietorships and partnerships Registering with the appropriate authorities Part I - Initial considerations when Organising a business Provided by the South African Revenue Service for more information visit the SARS webpage at Contents: ![]()
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