Setting up a company...help!

eth0_

I'm setting up an online clothes store and i'm really confused with the whole business side of things.
Basically I will be a sole trader, and i'm not likely to make more than €1000 profit a month. So do I just register a business name and business bank account? Am I liable to pay VAT to the revenue?

What sort of accounting do I need to submit to the revenue for such a small business? I'm working full time as it is, so can my earnings from my business be incorporated under my tax free allowance?

Also, in order to claim things back on tax, such as your home rents (per sq m you use for the business), broadband, electricity, VAT on items purchased for the business (I need a blackberry or pocket PC and i'm holding off until I get my head around this), do I need to be registered for VAT?


*confused*.

Our man in Havana

If you are turning over €25k you MUST be registered for vat.

As regards to working and business you should see an accountant to see if you would be better off being a company or a sole trader.

From what you say you would probably be better off being a limited company and getting an accountant to do all the paperwork.

eth0_

Ok but do you not have to be registered for VAT to be able to buy stock/equipment for the business ex-vat?

And if i'm buying stock from the USA what do I do about import duty, do I have to pay it and claim it back at a later date, or do I not have to pay it at all?

Zaph

There are companies that will do all the work for you in setting up your own company. Look in the Golden Pages under "company formation" or something similar. They should also be able to tell you what you need to do regarding VAT and the like.

Our man in Havana

Originally posted by eth0_
Ok but do you not have to be registered for VAT to be able to buy stock/equipment for the business ex-vat?

Yes you will need to be registered. You will also have to charge VAT on your sales.

And if i'm buying stock from the USA what do I do about import duty, do I have to pay it and claim it back at a later date, or do I not have to pay it at all?

You will still have to pay this regardless.

Victor

Is buying from the USA the best idea?

Originally posted by eth0_
Ok but do you not have to be registered for VAT to be able to buy stock/equipment for the business ex-vat?

Thats correct.

Originally posted by eth0_
And if i'm buying stock from the USA what do I do about import duty, do I have to pay it and claim it back at a later date, or do I not have to pay it at all?

There may be import duty of a few percent (it varies by product and source country). It is non-refundable. You will have to pay VAT at the point of entry, but you would be able to get it back at your next return (every two months).

You need to look up TARIC (click on browse)

PART 4 - SCHEDULE OF CUSTOM DUTIES
SCHEDULE XI - TEXTILES AND TEXTILE ARTICLES

Or you need to find CETI_01_01.pdf on the revenue site (somehow - it's part of this http://www.revenue.ie/pdf/CETI_01_01.pdf)

Gordon

I would have thought Pakistan would be cheaper for clothes than the US.

Good luck with the business.

eth0_

Originally posted by Gordon
I would have thought Pakistan would be cheaper for clothes than the US.

Good luck with the business.

They aren't any old rags, they're clothes that are very difficult to get outside of the USA and the company base is in the USA, and they do their wholesaling from there also. But that's just the one company, the rest are in the UK, Germany and Holland...it was just the USA imports that were worrying me

Gordon

Heh, Pakistan does have quality rags though, if you ever need those items converted into non-designer items. Hope it works out.

RainyDay

Tommy McGibney's Guide to Starting a New Business will help. Don' t rush into registering a new company. This will impose on you very specific legal obligations about company reporting, with hefty fines if you are late.

Have you done a decent business plan or P&L account to confirm that you can actually make money from this venture?

grumpytrousers

I'm setting up an online clothes store and i'm really confused with the whole business side of things.

Best of luck with it, but if i may be so bold as to suggest you ask somebody for advice whose job it IS to dispense such advice, not people on the internet.

As has been scientifically proven, we're all fat truck drivers wearing nothing but our vests despite what we may say!:D

seriously - have a chat with an accountant - it'll cost you a few hundred, but at least it'll be right, and if the advice he gives you is wrong, you have some class of comeback...

Again, best of luck whatever you do!

Specky

seriously - have a chat with an accountant - it'll cost you a few hundred

bollox. An initial consultation should cost you nothing. If they charge you, go find another one who doesn't. If you set up the business you will be requiring the services of an accountant ad if you are successful you will be requiring lots of accountancy type services. Any accountant worth his salt should be looking towards that and how he can get your business. Don't pay them for doing nothing, they already get paid more than they're worth for what they do......imho.....

grumpytrousers

bollox. An initial consultation should cost you nothing. If they charge you, go find another one who doesn't.

Brilliant!

So much the better - but my initial point still stands - talk to somebody who has a notion about these things.

mneylon

I would strongly recommend that you get advice from an accountant and make sure that you have that side of things sorted out in advance.
It's a real pain in the neck trying to get it all sorted out after the fact.
I'd also recommend that you get a good accounting package to keep track of it all.