The document discusses four main types of business ownership structures in South Africa: sole proprietorships, partnerships, close corporations (CCs), and private companies. It provides details on the key characteristics of each, including their legal structure, ownership, liability, taxation, and advantages and disadvantages. A sole proprietorship is owned and operated by one individual, while a partnership involves two to twenty partners. A CC is a legal entity with one to ten members, and a private company can have up to fifty shareholders.

2. Sole Trader Partnership Close Corporation Private Company Name No specific requirements No specific requirements CC Propriety Limited No. of Owners 1 2-20 1-10 1-50 Name of Owners Owner Partners Members Shareholders Liability Unlimited Unlimited Limited Limited Continuity Limited Unlimited Unlimited Unlimited Managed By Owner (does not have to physically be present) All/some partners All/some members At least 1 director elected by shareholders Capital Contributed by the owner Contributed or loans by partners Contributed or borrowed by members A maximum of 50 selected shareholders contribute the capital Formation No requirements Partnership Agreement (P.A)/ Articles Founding Statement Memorandum & Articles of Association Payment to Owners All profits paid to the owner Divided between partners according to the Partnership Agreement Paid according to % interest held by each member Dividends per share depending on no. of shares Availability of Financial Information Only available to the owner Only available to the partners Only available to members of the CC Only available to shareholders & perspective shareholders Type of Taxation Taxed on owners personal capacity Taxed on partners personal capacity Pays Company Tax Pays Company Tax

6. A private company is a separate legal entity distinct from its shareholders. A private company is liable for its debts and creditors and cannot sue the shareholders for the payment of these debts. . A private company can have up to 50 share holders. PRIVATE COMPANY

9. A sole trader is a business owned by one person, its also known as a sole proprietorship, the owner will be trading in your personal capacity and under his/her own name. The sole proprietor is the owner of all the business assets and is responsible or fully liable for all the business debts. SOLE PROPRIETOR

12. Close corporations (CCs) have been designed especially for small businesses. It is a legal entity more separated from its owners than a partnership or sole proprietorship, and more flexible than a company. A CC is regarded as a separate and distinct legal person and is formed and owned by its members but exists independently from them. A CC may be formed with one or more members but may not have more than 10.