Once you have conducted the necessary feasibility studies and determined the exact format of your agritourism business, the next step would be to decide on an appropriate business structure for the venture.
When starting an agritourism business, you must decide whether you want to be a sole proprietor, enter into a partnership, register a private company or establish a business trust. Whatever structure you choose, you have to register the new business entity for income tax, value added tax (VAT), Unemployment Insurance Fund (UIF), Compensation for Occupational Injuries and Diseases (COID), and pay-as-you-earn (PAYE).
In A Practical Guide to Guest House Management, Deseré Kokt outlines some of the questions you need to answer to determine which business structure is most suitable for your needs:
• Are you planning to be the sole owner of the agritourism venture?
• Do you want to retain all profits for yourself?
• Will you finance your own agritourism enterprise without securing a loan?
• Do you have enough capital to pay for all the legal fees involved, for example a liquor license?
• Are there assets that need to be kept separate from the agritourism enterprise, such as another property?
• Would you like to offset the tax losses of the business against your income from your farming enterprise?
• Which matrimonial system is applicable to you, if any?
It is recommended that you consult a lawyer or bookkeeper/ accountant for assistance with a business structure that requires official registration. “It is always advisable to enter into a business structure that offers maximum protection against the loss of your private estate,” Kokt says.
LAND-USE ZONING
Esta historia es de la edición 23 June 2017 de Farmer's Weekly.
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Esta historia es de la edición 23 June 2017 de Farmer's Weekly.
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