To maximize your tax savings, it is important to know when your business began. It can be months after this startup date before sales first starts happening.
There are no hard and fast rules on when a business starts, except perhaps the tax year. The beginning date is very much dependent on the cirucumstances surrounding each situation.
A business is considered to begin commence whenever some significant activity is started which is important for the operation of the business. For example, a business may be considered to have started when you begin applying for a license necessary to operate your business, or when you make your first purchase of supplies or products to sell.
Be sure to record all business related expenses between startup and your first sale. Don’t spend money on your business before your official startup date. Any business expense made before the start of a business will not be tax deductible.
So before you incur significant costs relating to your business, perform some event which will signify the beginning of your operation. This event may be the registering of your business name CIPC or the local Chamber of Commerce, or opening up a separate bank account. Whatever it is, do some thing that signifies the start of operations.