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Thread: Do I start a company or become an employee?

  1. #1
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    Do I start a company or become an employee?

    I work for a small company that recently entered into a JV with another company. My employment is set to be moved to the now new "JV company". The scope of my job has also changed and as a result there may be an opportunity for me to do work for multiple related companies.

    Is it better for me to start my own company and to invoice the entity monthly (on the basis that I will be invoicing other entities as well)? Or should I just become an employee of the new JV company?

    Does anyone have any insight into which is the most tax efficient route?

    Also, what do I risk losing from going to employee to director of my own company with a committed monthly income considering I have vehicle and home financed in my personal capacity?

    Any and all advice will be appreciated.

    Thank You!

  2. #2
    Diamond Member adrianh's Avatar
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    This is like asking whether you should buy a sedan or a bakkie. You need to figure the upsides and downsides out for yourself in you own situation. If you don't have serious "balls" to ride the hard times then going on your own might be really problematic.
    “Why, sometimes I've believed as many as six impossible things before breakfast.”
    ― Lewis Carroll, Alice in Wonderland

  3. #3
    Diamond Member Blurock's Avatar
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    My first question would also be; "Do you have the balls to start your own company?"
    As Adrian had intimated, you need discipline, the will to succeed, the skill to survive and the ambition and innovation to be successful.
    Are you prepared to 24/7/365? Are you prepared to take responsibility for everything that happens in your day?
    Remember, you ARE the business. Whatever you say or do impacts on your bottom line. There is no boss to run to.

    Now that I've scared you off - being your own boss and doing your own thing can be hugely rewarding and may send you in a complete different direction, once you are able to see and grab the opportunities. Good luck!
    Excellence is not a skill; its an attitude...

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