I’m sure you need some sort of license in order to give the advice that you are looking for! (Just another way for SARS to make money I suppose). Seeing as I don’t have any such license (or even any formal qualifications) you should ignore everything I say and do the opposite.

I think your questions require a whole post in order to answer properly. I have added it to my list of “must blog about some time”.

A super-quick summary would be: you probably won’t save much tax by forming a cc, and there are extra costs and lots of paperwork involved. The real reason to form a cc would be to create a structure that is separate from you, so that if an unhappy client sued you, or the company went bankrupt, you keep your personal reputation clean. Unless of course you have signed personal surities on debts, in which case you pretty screwed (ie, never sign those things). cc’s are also useful for working in partnership with other people, for building up a company that could be sold one day, and for making yourself look a whole lot more professional and giving the impression you’re going to stick around.

Getting back to the tax issue – if you create a cc just to do “personal services” type work for clients (ie selling your own time) SARS doesn’t like it, and they’ll tax you at the same rate as the maximum personal tax rate. You would need a couple of employees and/or products and services that are just your own hours.

Oh dear, even the “super-quick” summary is turning into an essay. It’s a big topic!

I mean, if you start making money, what’s the best way to get tax going right etc?
Is it via a CC or through personal income etc?

Also, from your experience, how do Tech/Internet companies (virtual workers) get treated by SARS? Do they like understand what it’s about?