Looking to close down my business...

byrne_baby_byrn

Hi guys,

My wife wanted to start a web design business for herself a bit over a year ago. At the time I thought she would be better off setting up as a sole trader but she preferred to set up a company instead.

Anyway, it never really got off the ground and I'd like to close it for her and help get her set up as a sole trader. Our first annual returns are coming up in September, so I thought now was a good time to wind it down.

The business is as close to "has never traded" as possibly could be. It never registered for VAT or income tax. Only a couple of sites were paid for, leaving a modest 3k in the bank.

So here are a couple of questions... Can I ask the CRO for a letter of no objection? What do I need to do first with the company bank account? Obviously, I need to close it, but can that be as simple as transferring the balance to my wife and paying off any tax liability at our own personal end of year?

Just looking for the path of least resistance here - and knowing me, there will be no path of least resistance, ha ha.

Thanks for any help.

darc

all the info is here
http://www.businesscompanyformations.ie/closingacompany.htm
simple process, but can take up to 3 months.

or info direct from CRO website
http://www.cro.ie/ena/business-termination-voluntary.aspx

lanternman

Can I ask why you have decided to get rid of the company seeing as it is now up and running. I appreciate that it may currently not be the most profitable company but I doubt it is going to get any busier as a sole trader.

Have you considered the time and effort that your wife will have to spend setting up as a sole trader, the time and expense of setting up the original company and also the time and expense of dissolving the current company.

byrne_baby_byrn

Hi Darc

Thanks for the links. That helps get me started. Cheers.

FusionNet

Why is everyone so PRO limited company over sole trader??? I mean most of the time you have to sign personal guarantees with banks and suppliers and really a limited company should only be considered if turn over is over 250k per annum? Am I wrong?

I personally think people just like the idea of a "company" as it sounds cooler than sole trader.. Personally I rather the sole trader more so as its cheaper to run, has less legal responsibilities and what's in the bank is yours, all yours..

I think we have to get over this idea of limited liability. Mark my words in the next 30 days your going to see a lot of guys losing everything they have even though they had limited companies.. Remember if you go bust in a limited company and you made stupid mistakes (ones everyone can make even sole traders) you can be taken to the cleaners under company law.. Oh the commercial court is going to make interesting reading in July..

My advise, go back to sole trader but only with the help of a professional..

byrne_baby_byrn

Hi FusionNet,

I couldn't agree more. Companies are great if you need to hire people but if it's just you on your own then set up as a sole trader - it makes the accounting a lot easier.

Anyway, we digress... Cheers for the post.

And lanternman too - cheers. It's simply a question of accountancy overhead. If we close the company now, it's a lot less work than closing it next year. And if things work out well as a sole trader, we can always set the company up again for expansion. There's really not a lot of expense involved.

fmcc

only thing to add is that as a director there are a lot more pension priviledges that cant be used as a sole trader.