Starting a business? Which structure to use - SA 2022!

Starting a business in South Africa? Not sure which business structure to use in South Africa? Sole proprietors vs Companies? I recently did a talk on companies (pty ltd) vs sole proprietors (sole traders), and looked at the pros and cons about companies (pty ltd) vs sole proprietors (sole traders), so enjoy the video, and feel free to comment below if you have questions then I can do a follow up on this video.
Do you need an accountant? Contact us at [e-mail] or check out our website at www.saaccountingsolutions.co.za
Topics I covered
Administration
Easy vs Complex
Bank Accounts
SARS returns
Applications and forms
Risks
Legal risk
SARS
UIF and WCA
Limits on finance
BEE
Deregistration and liquidation
Separation of business and personal
How to start a business in South Africa
When is a sole proprietor more beneficial?
•Starting a new venture
•Part time money generating hobby
•Cost saving on administration
•Tax benefits for low profits
•Switching over to company is an issue

[@michael_leclezio]

Thank you so much. I wish they had taught this to us at school!

[@SAAccountingNetwork]

At least you got to hear it from me!!!

[@SAAccountingNetwork]

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[@sefiriseepe9216]

I learnt this in business economics , from grade 8 , forms of ownership

[@VanessaMalemona]

That is very insightful thank you. I almost incorporated a company as a new small business beginner and had no idea as to the costs to keep a company open. Much appreciated

[@sanelisosimelane6317]

🙌🏽🙌🏽 you're a lifesaver. I appreciate your channel.

[@SAAccountingNetwork]

You are so welcome!

[@BrianDowneyPhotography]

Thank you, that answered a lot of questions for me. My wife and I have just recently registered a company, and even though we are starting small, I now feel much better about going the extra mile to formalize right from the very beginning.

[@SAAccountingNetwork]

Glad it was helpful! Agreed, I also think its the wise choice!

[@Trying_but-failing]

Hi Brian. Can I ask. Which path did you take to register your company? CIPC or a different route?

[@DarkTranquility77]

I have been running as a Sole Prop for many years and recently had to upgrade to Pty so I could get reseller rights. I very much appreciate the information from this video. It has opened my eyes and I feel alot more comfortable. I will be in contact for an accountant though.

[@SAAccountingNetwork]

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[@mikatekonukere5636]

Easy to follow and it has a lot of information that i needed to learn. Thanks for the wonderful video.

[@SAAccountingNetwork]

Glad it was helpful!

[@ashleymurugan4882]

Words of wisdom. Thank you ever so much.

[@SAAccountingNetwork]

You are so welcome

[@nomfundomolefe5881]

Thank you...the information was clear and concise.

[@SAAccountingNetwork]

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[@atiyahpetersen3137]

Thank you so much , I love this it's so informative. God bless!

[@SAAccountingNetwork]

You are so welcome!

[@zekastro]

This is wonderful and very informative. I can't wait to watch more videos like this.

[@SAAccountingNetwork]

Glad you enjoyed it!

[@SAAccountingNetwork]

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[@vampfoxilli7127]

Extremely useful thank you!

[@SAAccountingNetwork]

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[@Kvnza_SA]

You Sir are a star. Thank you!

[@SAAccountingNetwork]

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[@boceoreal905]

Am learning so much from your videos sir. Thank you

[@SAAccountingNetwork]

Glad to hear that!

[@rubixz]

Thank you so much, this has helped me a lot. I appreciate it so much.

[@SAAccountingNetwork]

Glad it helped!

[@njabulonkosi3660]

Very informative I needed this 🙏💪 Thank you sir

[@SAAccountingNetwork]

Glad it was helpful!

[@johnathanhampshire6585]

this was extremely informative, thank you...

[@SAAccountingNetwork]

Glad it was helpful!

[@uzairhoosen5918]

Very informative 👍 Thank you

[@SAAccountingNetwork]

Glad it was helpful!

[@barbrathompson9798]

Excellent , thank you

[@SAAccountingNetwork]

Glad you enjoyed it!

[@nerrisasunker5000]

Thank you for an informative video.

[@SAAccountingNetwork]

Glad it was helpful!

[@vuyombobosi615]

This video was very informative. Thank you 😊

[@SAAccountingNetwork]

Glad it was helpful!

[@wallybandaqumayo6536]

Thank you for this video.

[@SAAccountingNetwork]

My pleasure!

[@merlinbezuidenhout]

This was super informative, i even subscribed 📍

[@SAAccountingNetwork]

Awesome, thank you!

[@carmenfraser-king1202]

This was incredibly helpful. I started my first business this year that just got registered last month. I was so worried that I was going to pay exorbitant taxes as a Pty, and that it was going to kill my profits and eat into my take-home pay.... but now that I understand the risks of sole proprietors, I feel a lot more confident that I will be personally/legally protected.

[@SAAccountingNetwork]

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[@glantinemashile239]

Thank you Heinrich, very useful video👍

[@SAAccountingNetwork]

You are welcome!

[@SAAccountingNetwork]

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[@digitaltraveler1000]

Top Notch Content*****

[@SAAccountingNetwork]

Awesome man! Glad you enjoyed it!

[@pumzilegcado308]

Fantastic information. Most helpful. Thanks a lot

[@SAAccountingNetwork]

Glad it was helpful!

[@SAAccountingNetwork]

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[@mb6309-2]

Thanks a lot. Very enlightening.

[@SAAccountingNetwork]

You are welcome!

[@SAAccountingNetwork]

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[@darlaokoyi]

Thank you so much.

[@SAAccountingNetwork]

You're welcome!

[@artwellmdineka3424]

Cheers to this🤝🙌

[@SAAccountingNetwork]

Glad you enjoyed this!

[@nicolekallend561]

Thank you so much for this!

[@SAAccountingNetwork]

You're so welcome!

[@SAAccountingNetwork]

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[@chrisg1610]

Thank you very much I found this very helpful! Finally someone explains it easily and in the detail I need. I wasn't able to locate the video on Small Business Corporations though, is it inside of a video by another name?

[@SAAccountingNetwork]

kzbin.info/www/bejne/pIHPoJmijdFoY9U

[@thelifeoftoolboxt4359]

This super informative

[@SAAccountingNetwork]

Glad it was helpful!

[@sarishjainarain1530]

Thank you, very informative

[@SAAccountingNetwork]

Glad it was helpful!

[@SAAccountingNetwork]

kzbin.info/www/bejne/qnfNlWOwlpaCpdk

[@user-oh4hh3sr3x]

Hallo! I was so happy to find your channel! It is so informative! Thank you!! I am looking to start a business from home selling gift boxes online where I am goung to be the only one working there. I still have a full time job, so it's really more of a side hustle with the hope that it would grow into a full time job for me. So if I am the only only working for my business, would it still be better to register it as a company (based on the video I think so) and would I have to apply for UIF and WCA since of get UIF etc at my current job? Thank you!

[@BeatsByLWIN]

I'm busy watching the videos on the channel and it is super informative it is literally answering questions I'm having trouble finding answers for on Google. I want to register (preferably LTD PTY) as a business but as a single director and also be the only employee because with my current way of earning income, I usually reinvest more then 50% of what I make a month, to keep growing and I have noticed that it'll make more sense to reinvest money into advertising and similar ways as a business or company appose to an individual. I just started surpassing the taxable income amounts but as I said, more than 50% goes back to help grow what I do. My question. What will be an acceptable form of proof for the "reinvested amounts" will slips be sufficient or will I need more or additional documentation from the advertiser I'm using? I also just want to mention that I run a digital business where I generate income from digital sales, to put it in such terms.

[@SAAccountingNetwork]

kzbin.info/www/bejne/hpbKZ6SobJigfMk

[@tselisopetertsenoli1768]

Hi Can you please touch up on going from a sole to a company which includes Assets such as property and vehicles involved.

[@SAAccountingNetwork]

kzbin.info/www/bejne/hpbKZ6SobJigfMk

[@CoenradJMorgan]

Thank you so, so much for this. I am so irritated with the major banks who market business accounts agressively but offer no guidance at all. There used to be small business administration training courses via Damelin and other providers, courses I can no longer find. Do you perhaps know of a vendor who trains small business administration based on South African conditions?

[@SAAccountingNetwork]

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[@mlungisimbhense1866]

Thank you for this video, do you have one that can compare different company structures ( Personal Liability Company inc and Private Company (Pty) Ltd) and tax implications?

[@SAAccountingNetwork]

No, sorry

[@lanceharichunder9211]

You really help educate me so much god bless you, can i plsssssss have you as my accountant

[@SAAccountingNetwork]

Thank you 🙏

[@i_ofgod]

I learned more here than i did during highschool....could i ask for a video that couls explain how forex trader would go about his taxes,business structure, booke keeping etc. Would be undertaken...there doesnt seem to be much disclosure on that information...thank you once again

[@SAAccountingNetwork]

Yes, that is a very specialized area, so I think you will find it difficult the get free advice on KZbin so best to contact an auditor who specializes in these types of businesses.

[@SAAccountingNetwork]

kzbin.info/www/bejne/Y3anY2yEptGii7M

[@richellewridgway257]

Absolutely brilliant video. I've been operating at a sole prop and I'm definitely changing over to a company now!

[@SAAccountingNetwork]

Go for it!

[@SAAccountingNetwork]

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[@LeratoRelo]

25:09 thank you for the top notch info first of all. Much appreciated. My question is regarding the cost of administration. You memtion it will be+- 3000 to 5000 a year for a company. What factors make up administration costs?

[@SAAccountingNetwork]

kzbin.info/www/bejne/ZnTQp5mAqcmJd8U

[@motikoemofokeng8540]

Thank you, this really helps a lot. The only question I have is that is it possible to get an LLC in South Africa and if so how do you go about getting one ? Thank you in advance

[@SAAccountingNetwork]

kzbin.info/www/bejne/sHPcq2WArpuYebs

[@marcellakaffeer1647]

If iam employed by another company, and I start my own company B whille still working for company A. What is the SARS implications on my personal tax returns?

[@105soccerlover]

This is so very helpful, thank you for this clear and understandable information. I would like to start a web-design business where I develop and design websites. I already have all the resources and software needed to begin (low startup expenses). I will work small scale, only contracting projects that I can manage on my own. In considering the different structures, it seems like it most aligns with sole proprietorship. Do I need to register my company with the Sole Proprietor National Database? And when you say to open two banks accounts, do you mean with two separate banks? I want to make I am not doing anything dodgy while sorting out the details. Again, thank you thank you so much for all your content, it is so beneficial for my novice business self.

[@105soccerlover]

One last Q, as a sole proprietor if I have a client willing to keep me on a retainer fee, could I rather take the 25% PAYE deduction?

[@SAAccountingNetwork]

No need to register on a data base, unless if you are doing government work

[@SAAccountingNetwork]

kzbin.info/www/bejne/Y3anY2yEptGii7M

[@cameracue9187]

Hi Mr.H I know I'm being lazy right now but, do you have videos how how to register as a company and sole proprietor business? Thanks in advance .

[@SAAccountingNetwork]

Have a chat with these guys - www.registercompany.co.za/ - they will have you sorted in no time!

[@nhlakahkhumalo8618]

Found this very helpful, I'm trying to register an LLC and make business plan how do i go about doing that?

[@SAAccountingNetwork]

kzbin.info/www/bejne/l6CXpqOAfK6ShpI

[@kieshaannpetersen9854]

Please can you advise me, if I am doing online business, teaching English to Chinese students and in return getting paid by a Chinese Company in China, how should I register my online Teaching English Business?

[@violetgudumi]

This is very helpful, thank you. Is it advisable to register a pty company if I'm renting a tarven?

[@SAAccountingNetwork]

kzbin.info/www/bejne/noi3fIqraqqio9E

[@dylanvosloo8689]

Baie dankie vir 'n baie goeie video Heinrich! Ek wil weet indien ek 'n paar companies registreer, elke company doen iets anders, word die belansting gesplit tussen die companies of word dit bymekaar getel en op die hele bedrag gebelas?

[@SAAccountingNetwork]

Hi daar, nee elkeen word afsonderlik belas.

[@SAAccountingNetwork]

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[@podinfoc3952]

Hi thank you so much for all the information it really puts one at ease...one question If I started a company and it becomes profitable and then I start another company and I use the profit (after tax) from a the first company to fund the next one is they anything wrong with that ( or would I have to fund it out of my personal capacity )

[@SAAccountingNetwork]

Yes you can! Best is to classify that amount as a loan, and once the new company starts making money it must repay the loan again. So you appoint yourself as the shareholder and maybe contribute R100 as share capital. There are other ways but then it becomes more complicated - the key is to keep it simple.

[@podinfoc3952]

@@SAAccountingNetwork thank You channel is amazing and is helping a lot of us trying to learn and get into this

[@waldoadams1611]

A very informative video. Thanks! What's the difference between a CC and Pty Ltd?

[@SAAccountingNetwork]

Will do this in my Jan q&a, keep a look out for the video!

[@waldoadams1611]

@@SAAccountingNetwork Thank you. Will do so

[@SAAccountingNetwork]

kzbin.info/www/bejne/Y3anY2yEptGii7M

[@benmbiya904]

Hi there. Great thanks for such an informative video! I would like to ask and know. Im a south african national based in Vietnam. I would like to export "Telecoms" such as laptops and Desktops to government tenders advertised. Im starting out this venture for the first time. What would be the best option for me OR advice you would give me? Sole proprietor or company? I needed advice and more insight on that. Your reply would be greatly appreciated. Thank you.

[@SAAccountingNetwork]

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[@sydneymathuka4228]

Ok money it's clean smells good beutiful thanks

[@SAAccountingNetwork]

You’re welcome 😊

[@vleis7226]

Thank you, great info and answered a alot of my questions. I do in fact have a few questions. I am looking at starting a business to do CRYPTO mining, but a the current moment it is not profitable & the company will run at a loss for a few months, i will need to carry the company out of my own pocket. Is it worth doing a small business if its not profitable at the moment? Thanks for all the videos.

[@SAAccountingNetwork]

kzbin.info/www/bejne/noi3fIqraqqio9E

[@6to6deephousesessions74]

Question: With many people working from home, if i am trading as a small business, for example in IT i can offer alot of services from the comfort of my home how do i know what qualifies as an expense e.g. is my electricity bill still my personal expense or the business one?

[@SAAccountingNetwork]

Best to chat to a tax consultant, each case is different so there is too many variables to give a broad answer

[@shawenharker5885]

Do you pay taxes on capital raised for your company, even after the initail phase of fund raising?

[@SAAccountingNetwork]

No you dont

[@wendytibbitts6257]

If I do not believe my profits will be in excess of a million rand per annum, do I have to register for VAT?

[@SAAccountingNetwork]

VAT works with turnover, profit is not relevant

[@maplez470]

Hi. Plz advice, Am a sole proprietor and I want to apply for car finance what documents do I need to apply as I don't have a payslip I invoice my client monthly n they pay after 30 days

[@SAAccountingNetwork]

kzbin.info/www/bejne/Y3anY2yEptGii7M

[@martievanderwalt4140]

Hi. I have registered a company, but not sure if that was the right rhing to do. I have a contract with am overseas company and get only 1 salary in USD every month. Should I rather change over to a Sole Proprietor?

[@SAAccountingNetwork]

kzbin.info/www/bejne/g5jWcpltpLZpeqM

[@BeingBedingfield]

Thank you for this helpful video...definitely going to register a company rather 💯 Do you have a website? We are researching our options re getting an accountant, preferably someone that knows about running a KZbin Channel as a business 😬 And do you have any recommendations regarding which South African bank is best to have a business account with...we are considering FNB

[@SAAccountingNetwork]

Hi there, yes, please have a chat with me first before opening bank accounts and registering companies etc, you can send me a whatsapp on 0825596454, but I also have a website www.saaccountingnetwork.co.za but there are a few accountants listed there. I do some work for KZbinrs so know how the machine works.

[@SAAccountingNetwork]

I would also suggest you watch the second and third videos in that series so you can understand the basics of tax and what might be relevant to you - kzbin.info/aero/PLt_qVdbCcEmLfjhMBB159BRiGJBoOQ0Y6

[@BeingBedingfield]

@@SAAccountingNetwork thanks, will do 🙏

[@BeingBedingfield]

@@SAAccountingNetwork oh that’s awesome, thanks. What would the charge be for a consult?

[@SAAccountingNetwork]

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[@Health6Wealth]

How to pay less on taxes if you are an individual forex trader

[@SAAccountingNetwork]

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[@theresa7406]

I have recently registered for income tax. What is the difference between a tax reference number and a tax number? Is it the same thing

[@SAAccountingNetwork]

Hi there, you are indeed correct, one and the same thing!

[@SAAccountingNetwork]

kzbin.info/www/bejne/hpbKZ6SobJigfMk

[@taylortamia6162]

If you're a sole proprietor, do you not need to register your business with SARS ?

[@SAAccountingNetwork]

kzbin.info/www/bejne/Y3anY2yEptGii7M

[@FinancialConsultdotcodotza]

These days they also sue directors

[@SAAccountingNetwork]

Agreed

[@nolundabezitha]

Can you please assist in assist in registering a person liability company (Inc) for a Law Firm

[@SAAccountingNetwork]

best to reach out to these guys - they work with it every day - www.registercompany.co.za - they are the go to guys with these type of things!

[@SAAccountingNetwork]

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[@estievanwyk834]

How do i get in contact with you?

[@SAAccountingNetwork]

You can send me an email at [e-mail]

[@dylancoles4580]

hi i want to start a farm business do u have officers in Durban Pietermaritzburg erea.

[@SAAccountingNetwork]

www.saaccountingnetwork.co.za/accountant-pietermaritzburg.html

[@shavesh.]

Hi any funding for business help ,any Goverment grand funding for business ,please kindly let me know

[@SAAccountingNetwork]

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[@coeniejvr]

where are you based, I would like to chat to you and find out more info

[@SAAccountingNetwork]

Hi Coenie, I am based in Cape Town, but prefer online meetings so can do teams or zoom

[@SAAccountingNetwork]

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[@sydneymathuka4228]

It's clean smells good beutiful money

[@SAAccountingNetwork]

Great!!

[@Shack01]

@SA Accounting Network Thank you, Mr. Heindrich Grove the information was incredibly informative, and subscriber-earned! good work thank you so much

[@SAAccountingNetwork]

Thank you 🙏