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Frequently Asked Questions
  • Is it better to have a Sole Trader Company or a Limited Liability Company?
    This is according to your preference. If a person just seeks to function on his/her own without a business partner and is fully capable and content providing products/services on their own, then a sole trader is the best bet. It doesn't have much complication to set up or maintain. Many sole traders exist but they can be limited by the capability and vision of the sole owner, then again this may be desired by said owner. A Limited Liability Company (LLC) can be formed by at least 2 persons. It simply means that two or more persons have decided to form a company to provide either products or services to their intended client base. This company will basically have its own identity. Which as any adult would attest to, requires paperwork e.g. a separate ID #, Tax #, Address and details about its parents. The benefits to this is that the company can in turn have its own credit rating thereby having access to loan facilities, it can own items e.g. land, machinery, vehicles and if worse comes to worst, legal rulings against the company is only limited, in most cases, to the items owned by the company, not its owners.
  • Do I need an Accountant?
    It depends on where you are in your businesses development. If as a business owner, you have basic accounting knowledge and can produce accounts that that give an accurate picture of the actual events of the company then great. However, Lending agencies and exterior parties can be sceptical about this and would prefer that a qualified certified professional with experience in that specific area be responsible for the numbers that , in many cases, are the basis for the money, investment, credibility or whatever is being asked for.
  • Do I need to get audited?
    An audit is assessment don't by qualified professionals to determine whether the Financial Statements presented by the company and by extension its owners, represent a true and fair view of the company and its actual affairs. This is very often a costly exercise. The companies that require this are usually those who are on the stock exchange i.e. Public Limited Company; companies led by a Board Of Directors that want to make sure that the Management are doing what they are supposed to, or companies that are at the mercy of the approval of administrative bodies e.g Medical Board, or other overseeing societies that simply need to ensure that what the owners/managers said is being done is actually being done. It is to satisfy, the curiosity and manintain the trust of the persons that have vested interest in the goings on of the company otherwise known as stakeholders. Apart from this, it isn't a requirement of all companies and accounts presented and attested to by a professional in the accounting or such related field will suffice in most cases.
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