Growing number of CC registrations

[sgafc]

Five names in order of preference, register online,at CIPRO(Companies Office), submit your CK 7, name reservation on line. Wait a day to 5, for approval, and use the approved name, to finalise the CK1(Founding Statements),obtain Accounting Officers consent/letter, and you should have a CC, within a day to 2.

Word of Caution, though. Much is made of the limited liability advantages of CC''s.(Not Liable for the CC's debts), but the "corporate veil" can easily be pierced if the CC, doe not conform to certain standards.

Sometimes , retaining a Sole Proprietor or partnership can be benificial. A sole proprietor can for instance, derive benefits from his business assessed tax losses. This is not the case with a CC. The two units are taxed seperately.

[Dave A]

Sometimes , retaining a Sole Proprietor or partnership can be benificial. A sole proprietor can for instance, derive benefits from his business assessed tax losses. This is not the case with a CC. The two units are taxed seperately.

Interesting point. On the flip side, a CC can carry forward an assessed loss to offset against future profits - an individual can't.

Where (if there is one) is the dividing line where one is better than the other?

[sgafc]

Interesting point. On the flip side, a CC can carry forward an assessed loss to offset against future profits - an individual can't.

Where (if there is one) is the dividing line where one is better than the other?

No, and individual CAN offset taxes against assessed losses, so can a CC.
Mr X trading as Z Enterprises(Sole Trader) can offset Z Enterprises Losses against his personal income. He however cannot offset CC losses against personal Salaries/income.

Its not a matter of what is better. Decisions to form CC's Ptys etc, are informed by size, owners and investments concerned, and off course, individual choices.

[Dave A]

No, and individual CAN offset taxes against assessed losses,

But only in the same tax year, I thought. My understanding is you can't carry a loss into the next tax year and offset it there as an individual - as a CC you can.

[tec0]

Thanks this is looking good! Well now need to know now if you are just beginning and you want to do business with suppliers why then is a CC the only way to go?

or is it...