Changing from Sole Prop to Pty

[Gilliy]

HI all
My accountant has just told me how stupid i was registering my company
Anyway I have a sole prop that was formed 2 years ago and makes about 2 million turnover per year
The assets of the company are all on our personal names and most are still financed. We have small tools to the value of about R 10 000.00
There are 2 owners (myself and hiusband) of the Pty

My question
1. Can the sole prop just close down and the Pty take over or does the Sole Prop have to sell to the Pty?
2. Do i have to get an evaluator in to determine the business worth?
3. Would my husband (Sole prop) have to pay Capital Gains tax?

Any help would be appreciated

[Dave A]

My accountant has just told me how stupid i was registering my company

So is he/she fired yet?
You need an accountant who can give you meaningful advice on how to maximise the potential opportunities of the transition rather than express an opinion on your intelligence.

1. Can the sole prop just close down and the Pty take over or does the Sole Prop have to sell to the Pty?

You can wind down the sole prop and move the business activities into the Pty Ltd.
You can lease or sell the assets to the Pty Ltd.
You could sell the whole thing as a going concern.

Each has consequences. My suggestion is map out the consequences of each and then evaluate which course of action makes the most sense for your situation.