Set or change your business's legal form (sole trader, partnership, company, NGO, branch)
Why AkountFly asks for your legal form, how it changes your tax computation, equity accounts and reports, and how the owner changes it.
Not-for-profits can declare taxable trading income in Tax engine settings (pack setting 'taxable trading income'). Nigerian sole traders can enter annual rent paid for the 20% rent relief (max ₦500,000). Owner-level tax is an estimate on business profits only - other personal income and reliefs are not included.
Step-by-step
- 1Choose it once
New businesses pick the legal form in onboarding step 1 (after country and industry). Existing businesses see a one-time 'Confirm your legal form' prompt on login - only the owner can answer it, and Tax pages stay locked until it is set.
- 2What it drives
Tax Computation applies the right regime (personal income tax + social charge for sole traders, partner allocation for partnerships, exemption for not-for-profits, branch taxes for branches, corporate tax for companies), your equity accounts and the wording of your reports.
- 3Partnerships
Add the partner register (names, optional email, profit share adding to 100%) in Settings → General → Legal form & tax regime. Each partner gets Capital and Drawings accounts and an indicative tax line in the Tax Computation.
- 4Changing it
Settings → General → Legal form & tax regime → Change. Owner only, password required. Pick the new form and effective date; AkountFly records the history, writes an audit entry and posts an equity transfer journal (LF-CONV-…) when the regime changes. The tax engine uses the form in force at your fiscal year end and flags mid-year changes for review.