Question on Invoicing as a Sole Proprietor

[SWB]

As a Sole Proprietor wanting to sell PC hardware can I invoice customers as "XYZ Computers" or must it be my name "John Smith" on the invoice? IOW what's the right way to invoice?

 

[chrisc]

You can just use XYZ Computers, no need for your name.

 

[froot]

You should however, preferably, be doing this:

John Smith
t/a XYZ computers
address/details

Are you registered with CPIC as XYZ Computers?

 

[chrisc]

Sole proprietors do not need to register. I applied and told it was not necessary. Some customers might prefer just the business name. When banks issued cheques, then the cheque form would say John Smith (Prop) t/a XYZ Computers

 

[SWB]

Thanks everyone for the info. No I haven't registered with CPIC. I do however want to reserve a business name. Can I reserve a name while trading as a sole proprietor or is that only for PTY LTD?

 

[chrisc]

You have to go the whole registration route. It does not end there, you need to appoint an accountant and submit books to SARS every year. If your turnover exceeds R1,5m, then you must register for VAT. A big waste of money IMHO

Is your business name fairly unique, or is it John Smith Computers? If it is a common name then you might find out whether it has been registered. Many people place too much emphasis on the name of the business. I ran 2 sole proprietors for 33 years and both had unique names and one is still going. Another person who might think of a name similar to yours might look in the telephone directory or Google the name to see if it exists

Providing excellent service to the customer, returning phone calls and being honest are the ways to make a business succeed. Word of mouth is the best advertiser and if you can achieve that, you are on the way to success

 

[Fulcrum29]

I thought the Consumer Protection Act requires trading names to be registered or reserved under an entity?

 

[froot]

I thought the Consumer Protection Act requires trading names to be registered or reserved under an entity?

You're right.
http://www.bassgordon.co.za/New-legislation-tradingas-no-more.html

Which means I can think of [or well have seen a lot] a bunch of companies (or well CC's) that are in breach of this law.

This is how it's supposed to be:

OpenISP CC
(trading as "OpenWeb")

Okay, bar the fact that "Openweb" isn't registered with CIPC.

 

[HavocXphere]

This is how it's supposed to be:

OpenISP CC
(trading as "OpenWeb")

If you check on CIPRO you'll see OpenWeb isn't actually registered. I pointed the problem out to MrBeep like a year back or so...

 

[AchmatK]

If your turnover exceeds R1,5m, then you must register for VAT. A big waste of money IMHO

Go educate yourself on the benifits of registering for VAT before spewing out such crap.

 

[froot]

If you check on CIPRO you'll see OpenWeb isn't actually registered. I pointed the problem out to MrBeep like a year back or so...

Lol yeah that is true.

 

[Fulcrum29]

You're right.
http://www.bassgordon.co.za/New-legislation-tradingas-no-more.html

Which means I can think of [or well have seen a lot] a bunch of companies (or well CC's) that are in breach of this law.

This is how it's supposed to be:

I want to get this posted in detail in regard with the registered entities trading as prior the CPA implementation in regard with the trading as legal terms and conditions. There was a leeway where companies could still trade as without registering or reserving the name should they had been trading longer than a year prior the CPA (2008) as per their trading as name. This leeway I believe have expired and all entities should register the name or reserve the name under their legal entity, but many entities have breached the Act and continues to trade as. This will soon come back to haunt those especially when tax invoices will be audited, there is always a trail.

I don’t know why people say that accountants are expensive and that you should do legal registration in your own capacity. When you don’t know how… You have to ask. We run a rather large entity (CC) and our accountants charge R 200 per hour, which is nothing.

 

[froot]

Yup. But you get a)stingy people and b)invoice-happy accountants