Harbour & Associates

So you are starting a business and can’t decide whether it should be a company or remain a sole proprietor. It really depends upon the nature of the business, who your customers or clients will be and your expectation of success. So let’s take a look at it. One-man goods or service provider to the general public. You don’t expect to do more than earn a decent living, so you want to keep things simple and keep the costs down. Also, the general public don’t usually care whether they are dealing with a company or an individual. As far as…

Many companies can qualify as Small Business Corporations (SBCs) and save a lot of tax, but most entrepreneurs are unaware of these benefits. The requirements are, in most cases, not difficult to satisfy. First off, the SBC must be a company or CC and all of the shareholders (or members) must be natural persons, so that rules out holding companies and trusts. Then the shareholders may only be shareholders of the SBC or of dormant companies (or CCs) each with assets of less than R5 000. If any of them hold other shares, they should sell those shares to a…

One of my clients has a company with branches in Jhb, CT and Durban. The turnover is about R25m and he has three adult children. This is how and why we decided to restructure the business. His intention was to pass shares on to his children as he approaches retirement. We figured that we should form three new companies, one for each branch and each owned by one of his children, but with him as the sole director of all of them. He can relinquish the directorships when he retires. The existing company has certain accreditations which require additional specialised…

There are massive benefits in having your company or CC classified as a Small Business Corporation – most particularly a potential tax saving of approximately R95,000 every year. Here is how you qualify – 1) All members (shareholders) must be natural persons (i.e. no trusts or other companies). 2) No members may hold shares in any other private companies except dormant companies with less than R5 000 assets. 3) Turnover of the company and its subsidiaries must not exceed R20m. 4) No more than 20% of the turnover and capital gains may consist of investment income (such as property rental) and…

There are massive benefits in having your company or CC classified as a Small Business Corporation – most particularly a potential tax saving of approximately R90,000 every year. Here is how you qualify – 1) All members (shareholders) must be natural persons (i.e. no trusts or other companies). 2) No members may hold shares in any other private companies except dormant companies with less than R5 000 assets. 3) Turnover of the company and its subsidiaries must not exceed R20m. 4) No more than 20% of the turnover and capital gains may consist of investment income (such as property rental) and…

SBC

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What is a Small Business Corporation?

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The benefits of being a Small Business Corporation

Small Business Corporations

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