Sole Proprietorship or not?

johnyap1993 — Wed, 24 Jan 2018 22:42:05 +0800

Hi,

I am currently employed by a company in Malaysia and is also planning to do side business.

I only have one US-based client who will TT my fees (about 4-7k MYR) to me once per month. I am working a regular full time job in Malaysia.

Should I set up a sole proprietorship to handle the billing, payment etc.? Or it is better if I just continue to receive my fees via my personal saving account and just declare tax at the end of financial year? (Or not declaring tax, will having 50-80k MYR remitted to my saving account per financial year trigger anything at the LHDN side?)

Will my employer find out my income derived from my side business if I register as a sole proprietorship and declare tax?

TIA!

Setting up a sole proprietorship

johnyap1993 — Sat, 27 May 2017 02:05:07 +0800

Hi,

Sorry if this has already been answered.

I have been doing some freelance work for sometime and was contemplating if I should set up a proprietorship firm to better manage my money.

I am earning around MYR 6k per month net, and my salary is transferred from the US to my Malaysian personal bank account. I am currently working in the UK but I choose to remit my freelance salary to my Malaysian bank account due to more favourable taxation.

The reason I am thinking of doing so is I don't have income proof in Malaysia and thought that if I could set up a proprietorship firm so that I can receive salary/profit in Malaysia, paying taxes so that it will be easier for me to obtain loan in the future if I decide to buy properties or cars etc.

Is there a difference if I set up a proper firm and do the accounting and taxation etc., or is it sufficient that if I just declare my freelance work income in my annual income tax declaration?

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Sole Proprietorship or not?

Setting up a sole proprietorship