Can SARS tax you even if your business is not registered?

Can SARS tax you even if your business is not registered?

The answer is YES. If you are running a business that is not registered, you are basically a sole proprietor.

What Is Sole Proprietorship?

A sole proprietorship is defined as a business that is owned and operated by a natural person (individual).

This is considered the simplest form of doing business. It simply means the entity is not legal (registered) and has no existence separate from the owner who is called the proprietor. Although a sole proprietorship can operate under the name of its owner or give a business’ fictitious name, the name does not create a legal entity separate from the sole proprietor owner.

Pros and Cons of Sole Proprietorship

Sole proprietorship obviously has some pros and cons. Here are 3 pros and cons:

1️⃣Simple to establish, operate or even discontinue the business.
2️⃣Owner is free to make decisions.
3️⃣Owner receives all the profits.

1️⃣The owner is legally liable for all the debts of the business. 
2️⃣​Limited ability to raise capital, which limits the expansion of a business when new capital is required.
3️⃣The owner alone has limited skills, they may need to hire employees with sought-after skills.

What Is Most Tax Efficient?
Sole Proprietorship vs LTD (PTY)

It all boils down to expected earnings from your business.

Individuals are taxed on a sliding scale, which means that the rate of tax you pay increases as your earnings increase. This applies to any individual earning more than R87,300 per tax year.

In a company, profits are taxed at a rate of 28%, irrespective of the value. Plus, dividends tax is levied at 20% on profits retained in the company and distributed as a dividend in the future.

In A Nutshell…

As an individual earns more, you move into the higher tax bracket. The difference in tax between a company and a sole proprietor decreases. At a lower level of taxable income, it’s more tax-efficient to operate as a sole proprietor and enjoy the benefits available to individuals. At higher income brackets, it’s likely that company registration would be more beneficial.

This should help you make a better decision if you were stuck between registering your business and operating it individually. For business registrations and taxes, please do get in touch with us 📲

5 MUST HAVE apps on your phone | Entrepreneurs

We glorify being a “girl boss” or solopreneur but don’t talk much about the hardship you have to go through ALONE. You are the managing director, lawyer, marketing director, administrator, everything ALL ALONE. That cannot, in any way be easy, but some are suckers for the busy life.

Although you can outsource services or employ talent in your team, that isn’t any easy either. Building a team is one of the challenging job every entrepreneur has. If you are not ready for that as of yet, don’t worry WE GOT U 👊

The nice thing about technology is that it makes our lives easier, and it gets even better by the day. You can have your office in your room, you can work from the coffee shop, you can literally have your entire office on your phone and work on the go! We now have mobile apps that make our lives easier, and we will share with you 5 apps that will not only make your life easy, but will also keep you productive throughout the day.

5 apps that will make your life easy and keep you productive:

1️⃣ Flipd

This app helps you track all your productive activities. Flipd is designed to keep you out of distracting apps, it works like a lock screen on a timer, keeping you focused. You can set milestones and use stats to track your productivity. Further more, it has the nicest “background” music (sounds) to help you keep focus.

2️⃣ WhatsApp for Business

Wait, you do have Whatsapp Business, right? Because why not! This app is the best! It has a chatbot that you can set to sends automated messages to your contacts. You can also set quick replies you can quickly send for more efficient customer service. You can also add a catalogue, labels customers who have paid and those who haven’t, add trading hours, link to website, etc.

3️⃣ Canva

Canva is a graphic design platform, used to create social media graphics, presentations, posters, documents and other visual content. The app has ready made templates for users to use. There’s nothing you cannot find here. They even have a learning platform where you can learn from the best – how to create designs that resonates your brand.

4️⃣ Hootsuite

Hootsuite needs to mask off!! The app must be sent from above. It helps you manage all your social media accounts in one platform. If you are a data driven person, you will fall in love with it. It helps you monitor your growth trough it’s Analytics feature, helping you make better decisions about your content, and overall marketing strategy. A MUST HAVE 🤞

5️⃣ Trello

Trello is an effective way to manage your projects, an easy-to-use mobile platform. This app that helps you visualize what needs to get done, you can even collaborate with other team members. Trello helps you organize your projects into cards, lists and boards, great way to to see what projects are in progress, who’s collaborating on them, and what the status of each. You can set deadlines and categorize tasks according to their timelines, activities and priorities. Makes life easy. ‘

We hope these helps, these are just 5 in a million apps that simplify life. Let et us know in the comment section which app(s) make your life easy?