I would like to form a company but I need some advice on what my choices are.

 

Comparison of Business Entities

Sole Proprietor No protection from creditors. You can be sued personally for the business debts. You are the business Suitable for small business starting out. You need to work on a cash basis paying creditors and not allowing customers to run up accounts. Suggested Turnover 

  • 0 to R1 million

 

Partnerships Each partner is equally liable for the full amount of all the debs in a partnership. Business partnerships are the inevitable consequence of two or people starting a business. One should plan to form a company as soon as possible. Suggested Turnover

  • 0 to R5m
Close Corporation All close corporations will eventually be converted to companies. No new close corporation can be formed.    
Companies All companies are governed by the same Companies Act 2008. See our Companies Page for further details. Suggested Turnover 

  • 0 to R5 million
  • R5million up
Business Trusts This is not a popular business platform. It is a highly specialized option for business men with specific goals.