starting a business

chrism2007

i would like to setup business as an ebay seller.

kind of risky. it could make nothing

what happens with regards to tax etc.. if the company is making a loss?

i already have a full time steady job

paypal have limited my account because ive made over 1200 on ebay already selling

i want to go legit as a business

can anyone give me some advice please?

dbran

Hi

You will need to register for income tax by completing form TR1 and submitting it to revenue. You will then need to prepare annual accounts and complete a tax return and pay over the relevant Income tax every year on 31 October.

if you make a loss you can set it off against your PAYE income and obtain a tax refund if appropriate.


Hope this helps

dbran

chrism2007

would my current employer stop paying tax for me and pass the responsibility on to me?

probably the best place for me to go is the enterprise board however i was just wondering is there anything major i should look out for

for instance, lets say i was terrible at doing the admin side of things and messed up my tax returns or something like that. would i simply be given a bill or would i be in more serious trouble?

would the tax office think i was avoiding paying or would there be someone that could advise me?

cheers for the help

TheWaterboy

- Register as a Sole Trader.
- Keep all receipts, invoices etc.
- If you register in Jan 2010, You wont need to make your first tax return until 2011 - Get an accountant to do this if you have no idea
- Your current employer doesnt need to know anything about this business as it wont affect them in anyway as regards pay or tax

- Providing your on the system as a sole trader then the tax office will know that you will make some sort of returns to them.

- AS mentioned if you make aloss this can be offset against PAYE you have already paid.

RoadKillTs

for instance, lets say i was terrible at doing the admin side of things and messed up my tax returns or something like that. would i simply be given a bill or would i be in more serious trouble?

That would be nice!

Hire an accountant to do the tax returns.

What are going to be selling?

chrism2007

RoadKillTs wrote: »

That would be nice!

What are going to be selling?

anything that makes a profit really.

with Ebay the best items are small and not too cheap.

postage can be the difference between making a profit and not making a profit

Ireland has become a decent little market with the amount of people looking to save a few euro.

RoadKillTs

Well best of luck with it.
Check out this site for eBay trends

[url] http://new-pulse.ebay.com/ [/url]

chrism2007

RoadKillTs wrote: »

Well best of luck with it.
Check out this site for eBay trends

http://new-pulse.ebay.com/

problem with that is me and 10,000 others are looking at it.

think outside the box. markup on an ipod is probably 2 euro

very easy to find items with a 70-80% markup

buy for 10 and sell for 20

chrism2007

to give you an example ive just selected this random item from the states

here

this has sold 1,160 items :eek:

probably making a fiver profit each.

far less competition than ipods

RoadKillTs

to give you an example ive just selected this random item from the states

here

this has sold 1,160 items

That's impressive!

chrism2007

that company joined ebay in oct2005

it has over 70k feedback. probably sold 100,000+ items in 4 years

looking at the items thay probably have a 50% markup easily.

heres there items

http://stores.ebay.com/Vibecellular

lets say $4 average profit

thats $400k profit in 4 years

RoadKillTs

Do ya reckon he is making 4$ profit on every sale?
All his items have free P&P.
So he has cost price, postage and packing, ebay fees x 2 and paypal fees to deduct.
I doubt he make 400k in four years.
Fair play to him if he did!!
I'm jealous

JohnThomas09

chrism2007 wrote: »

that company joined ebay in oct2005

it has over 70k feedback. probably sold 100,000+ items in 4 years

looking at the items thay probably have a 50% markup easily.

heres there items

http://stores.ebay.com/Vibecellular

lets say $4 average profit

thats $400k profit in 4 years

can anyone set up a company and start selling on Ebay?

RoadKillTs

can anyone set up a company and start selling on Ebay?

Yes but you don't need to setup a company.
You can just set up as a sole trader.

JohnThomas09

RoadKillTs wrote: »

Yes but you don't need to setup a company.
You can just set up as a sole trader.

sorry if I sound stupid but im new to this game.Does that mean regsitering as a Sole Trader with Company Registartions or just tell Ebay your a Sole trader?

RoadKillTs

sorry if I sound stupid but im new to this game.Does that mean regsitering as a Sole Trader with Company Registartions or just tell Ebay your a Sole trader?

Yes with the company registrations office.

chrism2007

RoadKillTs wrote: »

Do ya reckon he is making 4$ profit on every sale?
All his items have free P&P.
So he has cost price, postage and packing, ebay fees x 2 and paypal fees to deduct.
I doubt he make 400k in four years.
Fair play to him if he did!!
I'm jealous

youd be suprised

for a 22 euro item i was paying around 2.00 fees and 1.50 P&P

postage is probably a lot more for his items but then again postage in the states could be cheaper

edit - that was selling for 22 euro and buying for 11