Starting a side hustle...

Sudo Panic

Well-Known Member
Joined
May 8, 2013
Messages
267
Hi guys, I've had this side hustle for about 2 years now but never really thought about it much because I just saw it as a way for a student to get some extra cash. So basically I've been doing installations of anything related to tech think (Smart TV's/WiFi/Desktops/Sound Systems) etc etc. I also do software installations/upgrades and setup their all their devices linked with all their accounts, this is appreciated by people who don't have the time, knowledge or just couldn't give a crap "I just want it to work" but also the older generation who don't have anybody to do it for them or end up getting ripped off by @sshole$ who overcharge for a shitty service. I firmly believe by charging people a realistic amount considering the fact that I have very minimal overheads.

Forgive me if I'm wrong/naive/young or just dumb af (take your pick) but I see this gap in the market, I feel like I should take a leap of faith, I'm do not expect this to replace a full time job and expect any profits to be passive as I won't be operating every single day.

After working for a while in retail I see what gets charged to the consumer and my god its a f@cking ripoff I understand profits need to made and people need get paid but I just think its a tad bit greedy.

Making them believe that a job that would normally take me half an hour to 2 hours takes them a full day, I understand they have other things to do but at the end of the day you are preying on the weak and ignorant, its a poor business model that will end up backfiring and make you lose customers.

TLDR: I provide a service for a fee and would like to make it official by registering a business via https://bizportal.gov.za/ I would essentially be a one man band, I just want to do this the right way because at the moment even though I'm not making a large amount of money I'm guessing it can still be considered illegal if I make over a certain amount of money over a year.
 

Speedster

Executive Member
Joined
May 2, 2006
Messages
8,140
Nothing illegal on what you're doing, as long as you're paying your taxes. Registering as a business might decrease, or increase, your tax burden as businesses are taxed at 28%. If your current marginal rate is below that there is no reason you can't continue doing business in your own name
 

maumau

Honorary Master
Joined
Aug 13, 2009
Messages
13,972
It's a great idea to do installations etc.

Where are you situated?
 

Sudo Panic

Well-Known Member
Joined
May 8, 2013
Messages
267
So would it be okay to register a website with a name that I would use as a business? Even though technically it is not linked to a registered business name?
 

Speedster

Executive Member
Joined
May 2, 2006
Messages
8,140
So would it be okay to register a website with a name that I would use as a business? Even though technically it is not linked to a registered business name?
Yes (with the proviso that you're not infringing on someone else's registered trademark)
 

clickingbuttons

Well-Known Member
Joined
Mar 18, 2018
Messages
300
Nothing illegal on what you're doing, as long as you're paying your taxes. Registering as a business might decrease, or increase, your tax burden as businesses are taxed at 28%. If your current marginal rate is below that there is no reason you can't continue doing business in your own name
Accept cash only and try get away with giving verbal invoices.
 

lowriderza

Expert Member
Joined
May 23, 2019
Messages
1,455
Hey @Sudo Panic. Glad to see you around. Please don't go the route of registering a business it is totally unnecessary. It is perfectly legal and way easier to trade as a Sole Proprietor. I have been trading as one for a few years now having had a cc before and it's way easier. From a legal perspective you' ll trade as "your legal name trading as your business name". You can open business accounts (FNB has inexpensive products) and sign up to 99‰ of suppliers. You can get Finance on a vehicle as a business, be a registered employer and do anything really. The only drawbacks are you have a little less legal protection and some suppliers can be wary to deal with a sole prop. But those are minor issues.
 

Sudo Panic

Well-Known Member
Joined
May 8, 2013
Messages
267
So I just want to clarify, if I am going to register a domain, can I call it whatever I want or would it need to be under my legal name. I just wanna get this right first time.

Edit: I realize how dumb that sounded now, but if I am registering a website operating under a a different name and just list myself as a sole proprietor? Haha wow I'm very noob.
 
Last edited:

Swa

Honorary Master
Joined
May 4, 2012
Messages
22,309
Registering a business as a sole proprietor doesn't give you any additional perks except protecting your IP. Sars still treats it as you making the money in your personal capacity and you'll have to pay personal taxes. You can register any website name that doesn't infringe on someone else's IP.
 

lowriderza

Expert Member
Joined
May 23, 2019
Messages
1,455
So I just want to clarify, if I am going to register a domain, can I call it whatever I want or would it need to be under my legal name. I just wanna get this right first time.

Edit: I realize how dumb that sounded now, but if I am registering a website operating under a a different name and just list myself as a sole proprietor? Haha wow I'm very noob.
Yes you can just list yourself as a sole proprietor. You also don't need to register anywhere as a sole proprietor it's a legal definition like a natural person. And don't focus too much on website marketing except if you can spend either lots of time or lots of money. The best marketing is networking and word of mouth.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
2,158
Nothing illegal on what you're doing, as long as you're paying your taxes. Registering as a business might decrease, or increase, your tax burden as businesses are taxed at 28%. If your current marginal rate is below that there is no reason you can't continue doing business in your own name
He could probably take advantage of SBC tax rates and pay significantly less than 28%.
 

Swa

Honorary Master
Joined
May 4, 2012
Messages
22,309
He could probably take advantage of SBC tax rates and pay significantly less than 28%.
Wouldn't he then have to register and operate as a formal business? That would then exclude working in his personal capacity and he would have to pay DWT over and above.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
2,158
Wouldn't he then have to register and operate as a formal business? That would then exclude working in his personal capacity and he would have to pay DWT over and above.
Yes he would, but DWT is 20%, and if his marginal rate is above 20% he would get a tax saving. The overheads will be slightly higher, but even if the business was making more than a few grand a month he'd benefit.
 

CT_Biker

Expert Member
Joined
Sep 10, 2016
Messages
1,869
Yes he would, but DWT is 20%, and if his marginal rate is above 20% he would get a tax saving. The overheads will be slightly higher, but even if the business was making more than a few grand a month he'd benefit.
Could you explain this in further detail please?
 

Jade @ ZA Domains

ZA Domains representative
Company Rep
Joined
Nov 17, 2015
Messages
556
So I just want to clarify, if I am going to register a domain, can I call it whatever I want or would it need to be under my legal name. I just wanna get this right first time.

Edit: I realize how dumb that sounded now, but if I am registering a website operating under a a different name and just list myself as a sole proprietor? Haha wow I'm very noob.
When you register your domain name it will get registered to yourself, that is the first and last name used at the time of registering the domain, the registry makes provision for "Registrant Organization"
These details can be amended at any time via your registrar so dont stress too much about that.
What is more important is choosing the correct domain name the first time as its a pain in ass to later change domain names, email addresses etc later on after you have been established.

With regards to legalities of domain registration, make sure that you arent infringing on any local and international trade marks, and if possible that the domain name that you intend to register is not identical to a registered entity that may not have registered their domain name.

If you see yourself doing this for the foreseeable future, think long about the domain name, choose a domain name that is short, easy to remember, and identifies you / your business. If possible, register all variants of your domain name to ensure that competitors dont chase after similar domain names - it happens!
 
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