Business name

kajo

Why would I want to regster a business name other than others might grab it.
What is the advantage to registering a business name?

Would I be liable for tax if I setup a website and business name ahead of getting the business of the ground?

I would like to test the water before I jump in is that such a bad thing?

Thanks,

Kajo.

tak

Why would I want to register a business name other than others might grab it ?

There may be some advantages relating to VAT on some leases. Or so some guy told me last year. Said his solicitor advised to start business as sole trader, then covert to ltd co. Sorry I cannot be more specific - maybe you could ask a local (older) auctioneer about this.


What is the advantage to registering a business name?

Outside of the above, I think that all the stated advantages
e.g. http://www.brenson-lawlor.ie/formation.html
of sole traders over limited companies are not significant.
In particular, the requirement for limited companies to submit their accounts to the CRO is relaxed for smaller firms (i.e. turnover < €317,000, assets < €1.9 m, employees <50) and less detailed disclosure is acceptable.

But, from what you say about yourself, the main advantage for you (if you are trying this venture as a sideline from your main job) may be the simplicity of the arrangements for setting up under a business name.
Unlike a business name, the limited company formation process requires a bit of paperwork at the start. Returns must be made. And changes to any part of the company parameters (even director's address) must be formally recorded by the CRO. DIY ltd co can be done for ~€100. Done for you it would be around €350 - €500.
The ltd co structure requires 2 directors at minimum. So you must have someone who trusts you so much that they will accept liability for any loss that may occur. Finding someone to accept this responsibility is easier said than done. So for a small venture or sideline the business name is less hassle.


Would I be liable for tax if I setup a website and business name ahead of getting the business of the ground?

No, as long as you have not registered the business name with your local tax office and got VAT number and made PAYE/PRSI arrangements.
That way - if the "sideline" kicked off okay - you could formally register with the tax office, backdated to the actual start. If it was not encouraging, you'd just work out the net income you'd got from it (turnover - all allowable expenses) and enter this as other income in your annual tax return.

I would like to test the water before I jump in is that such a bad thing?

You know the answer to this one.

kajo

Thanks the link was good to read!