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Thread: About converting from sole proprietor to Pty Ltd

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    About converting from sole proprietor to Pty Ltd

    I am a bookkeeper, and want to know re onverting from a sole prop to Pty Ltd,
    what happens to the owners Loan account in the Sole prop do we transfer everything across? and its business as usual

    or how would we handle that?

    also on the tax return we have a capital share, not sure what that is about

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    Quote Originally Posted by cynthia5510 View Post
    what happens to the owners Loan account in the Sole prop do we transfer everything across? and its business as usual
    How can the owner have a loan account in a sole proprietor situation? The business and the person are the same legal entity.

    Is this perhaps a drawings account that has been tracking draw downs by the owner?

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