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Thread: business ventures

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    business ventures

    i am not sure how to word this...

    i have a few new bussiness venture i am busy trying to get off the ground...and need some advice.

    if i already have 2 established companies...one being a proffesional/consulting service and the other a general contracting company.

    how do i go about setting up the new ventures...which have nothing to do with the above companies...completelty different fields...both manufacturing...but completely different fields...both have different machines and are completely seperated in my workshop...if they take off i will be extending the workshop by another about 40 squares...so that i can move the noisy dusty machines out my main workshop.

    do i register another 2 comapnies...open another 2 bank accounts?

    the reason i ask is because i dont know what to do with the money if people want to deposit into a bank account.

    if i one of the bussiness is a sole proprietor and vat registered...how does it affect my vat returns?

    do i keep all the slips for the new ventures seperate or do i declare all the materials in the vat bussiness and get the deposits into that bank account and claim the vat?

    or do i keep everything completley seperate and keep another set of books for each one of the new ventures?

    so many other questions but lets leave it here for now.

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    Diamond Member Justloadit's Avatar
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    Hi Murdock,

    I would not waste my time right now opening new accounts and books. Run it all in your main account. If and when it becomes a successful business and venture, then register the company, and then register for VAT and SARS and open an account. If it does not work out, then so be it, you carry on as you are now.
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    Diamond Member AndyD's Avatar
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    I agree, it's expensive to register them as separate business which will need separate accounts, separate books, insurance etc. I would just run it under the umbrella of your existing trading entity unless there's a very big reason not to.
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    Email problem mother's Avatar
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    hey murdock! Yes, I would also just run it as is for now, no new accounts or registrations. But make sure your admin and bookkeeping is 100% up to date and accurate, because if and when something takes off, you will need to know exactly what and how much.

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    Diamond Member wynn's Avatar
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    If you don't have a book keeper already (mornings only type lady) maybe now is the time to employ one (on contract) to keep the books for the seperate entities apart but under one umbrella.

    you don't need to register a new company to do this just trade as Murdock cc t/a ZZ Manufacturing and t/a XX Distribution etc. until there is enough regular turnover to seperate the businesses.

    Then you can consider a new Pty Ltd (Murdock Holdings) holding all the seperate companies (your existing and any new ones spawned more recently)

    keep the seperation as is at one step until you can increase the seperation to two steps.
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    Quote Originally Posted by wynn View Post
    If you don't have a book keeper already (mornings only type lady) maybe now is the time to employ one (on contract) to keep the books for the seperate entities apart but under one umbrella.

    you don't need to register a new company to do this just trade as Murdock cc t/a ZZ Manufacturing and t/a XX Distribution etc. until there is enough regular turnover to seperate the businesses.

    Then you can consider a new Pty Ltd (Murdock Holdings) holding all the seperate companies (your existing and any new ones spawned more recently)

    keep the seperation as is at one step until you can increase the seperation to two steps.

    just to check that i understand this correctly...i have a registered cc which is not vat registered...and use it for consulting work...leave it as

    consulting services cc

    then have another part of the same registered cc T/A murdocks wood creations
    and the other T/A murdocks ally creations...all under the same cc?

    if the cc is not vat registered...i just need to keep a set of books for each division of the cc?

    the reason for the seperate bank account is because the ally creations...purchases materials...i normally just do an eft once or twice a month depending on the orders...this operation has been going for a period of time already and has grown slowly...but this year i have an opitunity to turn it around and expand...due to demand...i have chosen to keep it small...mainly because of the headache of paper work.

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    At the moment you only have one company, the cc. The T/A divisions are merely internal separations that you have created, they are not separate entities. When doing the tax returns for the cc you must include all the figures of the divisions together. You can separate your internal accounts into divisions if you wish, but that is entirely up to you.

    If the cc becomes VAT registered then that implies all the divisions become VAT registered as they are part of the same entity. I can't imagine its possible to have one division registered for VAT and not another.

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    Silver Member Norri's Avatar
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    Just keep in mind folks that with the CPA, it's no longer legal to use t/a. If you've been doing it for over a year prior to the CPA, then you have 12 months to correct it. If less than that, then you were supposed to stop when the CPA came into effect (April 2011 I think).

    At least, that was the case the last time I looked at this.
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    @ Norri ...... umm that is not what I have been told - i am also wanting to set up another business with a partner and have been told about the new laws of pty ltd etc, but have also got a memo to say that you can buy a shelf cc and convert it to a pty ltd within 10 years. If I do it in the next two years it is no charge. So effectively if I do buy a shelf cc I will be T/A !
    So something does not make sense here - if you have 10 years to change then why can you not be a T/A ???

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    Silver Member Norri's Avatar
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    The point behind the "trading as" restriction of the CPA is so that consumers always know exactly who they're dealing with. Also, if you're a sole-prop, you need to use your real name and include your ID number, if you're a CC, you need your ACTUAL CC's name and registration number and so on.

    Of course, if the business name that comes after "trading as" is an actual registered entity, and it's yours, you can use it.

    Check out this PDF on the topic: https://www.saica.co.za/Portals/0/Te...o%20outlaw.pdf
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