We are often asked whether it is necessary to set yourself up as a limited company when first starting out, or if working as a sole trader is best. Here are a few things to consider for each option:

• Sole Trader
  • + No upfront legal registering of company or annual financial reporting necessary.
  • + You still have to tell revenue that you have started operating as a Sole Trader (Revenue.ie, or ask us to help.)
  • + You can still register a business name if you don’t want to trade under your own name. (Business Name, or ask us to help.)
  • – You will be personally liable for all business debts
  • – You still have to submit an annual tax return and keep accounts with receipts/invoices etc.
  • – You will pay tax at individual rate (much higher than company rate).
• Limited Company
  • + You will not be personally liable for the company’s debts (unless specifically agreed with the creditor)
  • + You pay tax on all your expenses at the company rate (much lower than individual rate).
  • + Once you hit a threadhold of income, you will register for VAT. This means reporting and paying VAT every 2 months, but also that you get the VAT back on all your expenses. (VAT registration, or ask us to help.)
  • – You must register your company with Companies Registration Office (CRO, or ask us to help.), including having at least 1 Director, a secretary and a Constituion.
  • – You will need to file annual financial and tax returns and in some instances, have your reports audited. (This is our speciality – ask us to help.)