New to business question

[lance71]

Hi there,

I recently "started my own business". I would like to know what are the regulations in regards to registering etc.?

I started it but basically I just have a name and website, so basically im freelancing but as a company rather than as an individual. I dont have any staff members or anything like that.

Thanks,
Lance

[wynn]

Just carry on as you are until you start to make serious money or you get a good few clients, then when the cash starts to flow think about registering.
Any income in the meantime can be reported on your Income Tax Return so that you stay legal.

[lance71]

Thanks a lot, i was worried i had to be registered etc and start paying company tax.

So will that automatically go into my e-filing or should I be recording every amount that comes in so I know how much I make by the end of the year?

[Dave A]

You'll be a sole proprietor, so you'll have to produce a basic financial statement at the least. Keep a record of income and expenditure - and make sure you can prove all your expenses (keep your slips).

You'll be taxed on your income less deductible expenditure - which is pretty much anything related to income generating expenditure.

[lance71]

Thanks Dave, unfortunately I haven't been keeping all my slips other than petrol slips so that will help I suppose.

Would I need to get an accountant to do my financial statement or is it something simple enough for me to do?

[wynn]

Unfortunately most accountants see a page with a thin black line with income on one side and expenses on the other, we solopreneurs however see a rather wide grey column in the middle of the page.

Just a simple spreadsheet with income and provable expenses will do you just add the income after expenses to any other income you receive.

Petrol slips fall under travel and vehicle expenses etc. and you need to keep a log book for that writing down mileage before and after you use the car for work and it has to have be a provable destination so "local Spar for bread and milk" won't cut it

[Dave A]

Would I need to get an accountant to do my financial statement or is it something simple enough for me to do?

As a sole proprietor, you don't have to get an accountant involved, but I do recommend that you do. Nothing like a set of experienced eyes running over things, especially if this is something new and foreign to you.

[lance71]

Thanks a lot, I think I will get one involved and try learn a thing or two for the next time.

Thanks for the feedback, will bear all in mind.

[david2677]

Would it not be advisable to register with CIPRO so that even though you not compliant you have you business name reserved

[lance71]

Would it not be advisable to register with CIPRO so that even though you not compliant you have you business name reserved

Hi David, thanks for your input, do you mean registering a company name with CIPRO? How do you go about that (excuse my ignorance) and what would the costs be about?

[david2677]

Before you go ahead you need to be sure it doesn't have any negative cost effects on the Tax side. I was looking at it at a point where what ever name you decide to use it will be consistent when you decide to go fulltime. The total cost is about R175-00 if you do it yourself, R50-00 to have a name reserved for a prescribed time frame 6 months i think and R125-00 to register Pty or. The online service is not operating well enough during working hours

[jmtrading]

Tax Return is the first thing you should consider and the rest come later.
Make sure you keep all record regarding your business operations.

[HR Solutions]

I have used these guys on a number of occasions and can recommend them. I have never met them. Always dealt with them via the phone or e mail. Have transferred money to them before they do anything without a problem.

https://www.factcorp.co.za

[lance71]

Tax Return is the first thing you should consider and the rest come later.
Make sure you keep all record regarding your business operations.

Thanks,I haven't been keeping records per say besides quotes and invoices so hopefully an accountant will be able to make sense of all that.

I have used these guys on a number of occasions and can recommend them. I have never met them. Always dealt with them via the phone or e mail. Have transferred money to them before they do anything without a problem.

https://www.factcorp.co.za

Do you recommend me registering a name then, if so what are the advantages of this?

[lance71]

Also I had a look at the Factcorp site and they have a few different options like company registration including tax certificate, which would be the one for me in my case?