Following on from this, Henk (our editor-in-chief) sent me a very interesting article by Bart Kooi of RSM Betty & Dickson (Tshwane): Business Entities and the appropriate vehicle – time to rethink and revisit? He looks at what type of business entity is most appropriate for what business. He lists the pros and cons of each type of entity. The entities he discusses are: • sole proprietors • partnerships • trusts • close corporations • private companies. Seeing that I wrote about the US perspective on which business entitles would be best for small businesses, I thought that it’d be useful for you to see what a South African expert says in terms of the pros and cons of various business entities… Sole proprietorships:
- Pros: Sole proprietorships have simple structures and there are low administrative costs.
- Cons: Sole proprietorships are not always tax friendly.
- Pros: Sometimes, partnerships have simple structures and may have low administrative costs.
- Cons: Partnerships are sometimes tax friendly
- Pros: Often,...