Sole trader vs Limited company ques

RicardoSmith

Someone told me you can Claim a wider variety of business expenses as a sole trader than you can as a limited company. Is that correct?

Victor

I imagine it's down to individual circumstances. A company is a separate legal person and therefore anything it buys, it owns, whereas an individual can to a degree fudge things.

Borrowings (to buy shares) might be taxed differently - if hte company is listed, you can't write off the interest.

One thing to watch out for is the different taxes paid. A company will need to pay Corporation Tax, Dividend witholding Tax and PRSI (and CGT), whereas a sole trader will only pay low rate PRSI.

VAT registration will make a difference (sole trader and company can register).

dwayneburke

hi

I want to setup a limited company....where do i start? I heard there is a website that will sort out most of the work for you...anyone know it?

If not where do i start from there

Tks

Dwayne

Maximilian

There's plenty - see the golden pages even under "company formations"

I use the Law Society service - its pretty good. www.lawsociety.ie