Small business corporations. Archives

It has happened so often now that I am no longer shocked when I hear from an entrepreneur that his accounting professional failed to bring any one of these four things to his attention. 1) In terms of the new Companies Act, if your company is doing less than about R400 million a year turnover, it doesn’t need an auditor. 2) And it does not need an audit. The auditing industry suffered very badly when the new Companies Act introduced these new requirements (or lack of them), so let’s break it down. I’ll assume that yours is not a company…

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…

So you set up your trust for asset protection and estate planning. Are there any other benefits? Two that I can think of. One I love the other I dislike intensely. The one I love is that it can be the means whereby one of your companies can qualify as a Small Business Corporation for tax purposes (potential tax saving of R95 000 per annum). In order to qualify, one of the requirements is that the shareholder/member is only a shareholder/member of that particular company. This is a problem if you have other business interests, so what we do is…

Small business corporations.

Four things your accounting professional didn’t tell you

Splitting up your company for B-BBEE and Small Business tax perks

What else can my trust do for me?