Results 1 to 7 of 7

Thread: Sole Proprietor - is it still legal?

  1. #1
    Bronze Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    195
    Thanks
    67
    Thanked 28 Times in 26 Posts

    Sole Proprietor - is it still legal?

    Apologies, I tried to find the answer in previous threads, but couldn't find anything definitive.

    Is it still legal to trade as a sole proprietor? I cannot see how it can be done away with completely.

  2. #2
    Bronze Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    195
    Thanks
    67
    Thanked 28 Times in 26 Posts
    OK, a "similar threads" popped up and it looks like it is still legal, but I have to register the name. My accountant insists that it is better to trade as a sole proprietor even though I have a registered CC. I am currently registered for turnover tax, but will have to deregister next year unless they raise the ceiling again.

    For TT, it is so simple to complete the tax returns as sole proprietor and it is certainly cheaper. I don't want to complicate things if I don't have to.

  3. #3
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    832
    Thanks
    180
    Thanked 176 Times in 145 Posts
    Yes, a sole proprietor is still legal. All it means is that you trade as yourself. There is no need to create a new entity such as a company. Basically, you are the business. I can't see how this could ever become "ilegal".

    It is the simplest and cheapest form of running a business. Its drawbacks are:

    - that you can't share the ownership of the business with others if it grows.
    - that all your personal assets are at risk if your business fails.
    - that is can be complicated to sell the business in the future as its mixed with all your personal items.
    - there is no continuity with the business as if you die, the business ceases to exist.
    - some corporate customers only like to deal with companies (I still don't know why).

  4. Thanks given for this post:

    Newretailer (07-Sep-11)

  5. #4
    Bronze Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    195
    Thanks
    67
    Thanked 28 Times in 26 Posts
    Thank you. You raise some good points. The continuity of the business after death would be a problem.

    One of the other problems I find is your last point: the shopping centre where I want to sign a lease, do not want to do it for a sole proprietor. Do they even have a right to refuse it?

  6. #5
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    832
    Thanks
    180
    Thanked 176 Times in 145 Posts
    They can probably sign up whoever they want as a tennant and similarly refuse whoever they want. I just don't understand why they won't deal with a sole prop.

  7. Thanks given for this post:

    Newretailer (07-Sep-11)

  8. #6
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by BusFact View Post
    I just don't understand why they won't deal with a sole prop.
    Especially as most often they want to bind the owners of the company into a suretyship anyway
    The trouble with opportunity is it normally comes dressed up as work.

  9. Thanks given for this post:

    Newretailer (07-Sep-11)

  10. #7
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    832
    Thanks
    180
    Thanked 176 Times in 145 Posts
    Quote Originally Posted by Dave A View Post
    Especially as most often they want to bind the owners of the company into a suretyship anyway
    Exactly. Very confusing.

  11. Thanks given for this post:

    Newretailer (07-Sep-11)

Similar Threads

  1. Converting a CC to a sole proprietor
    By bantersaurus in forum Tax Forum
    Replies: 11
    Last Post: 17-May-12, 05:00 PM
  2. [Question] Sole Proprietor and Turnover Tax
    By h4ns3n in forum Tax Forum
    Replies: 1
    Last Post: 24-Jul-11, 05:50 PM
  3. Sole Proprietor and Trading Name
    By Mikeygee in forum General Regulatory Compliance Forum
    Replies: 10
    Last Post: 16-Jul-11, 02:23 PM
  4. [Question] Two different types of sole proprietor businesses on my name?
    By Entrepreneurgal in forum Accounting Forum
    Replies: 5
    Last Post: 05-Apr-11, 09:00 PM
  5. [Question] Sole Proprietor Advice Required?
    By mleroux in forum Tax Forum
    Replies: 3
    Last Post: 25-Jan-11, 11:11 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •