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Some Very Basic Questions Re: Payments Before Setting Up Limited Company

  • 25-02-2010 11:48am
    #1
    optimusgrime
    Registered Users, Registered Users 2 Posts: 56 ✭✭


    Hello,

    Supposing I set up an online store as a limited company and I wish to register for VAT.

    To start the company I pay a registered business address as an individual and they charge me VAT. I pay formations company as an individual and they will me, including VAT.

    If I get these and other pre-set up invoices made out in the companies name can the company claim VAT back on these once it is registered for VAT, even if its a few months later?

    And what of other pre-company expenses. Supposing I need to buy a domain name from a private individual for €1000, again I need to get this before starting the company.

    If I pay for this as a private individual is there some way I can transfer this payment to the company once it is formed? Indeed the same applies for the company formations, and registered business address payments above.

    Any advice would be much appreciated.

    Thanks


Comments

  • #2
    arctictree
    Registered Users, Registered Users 2 Posts: 4,364 ✭✭✭arctictree


    Yes, any company formation expenses can be put in the company accounts and AFAIK you can claim back VAT to.


  • #3
    optimusgrime
    Registered Users, Registered Users 2 Posts: 56 ✭✭optimusgrime


    Thanks for the reply.

    How would one do that? Can you transfer the money from the business account to yourself to "pay back" for the expenses or how would it work?


  • #4
    arctictree
    Registered Users, Registered Users 2 Posts: 4,364 ✭✭✭arctictree


    optimusgrime wrote: »
    Thanks for the reply.

    How would one do that? Can you transfer the money from the business account to yourself to "pay back" for the expenses or how would it work?

    I normally put a directors loan of 2 or 3K into the company at the start. Use this to fund the starting of the company. When your company has funds, pay back the directors loan.

    Alternatively, just pay the expenses yourself and when your company has the funds, write yourself a cheque for formation expenses.


  • #5
    optimusgrime
    Registered Users, Registered Users 2 Posts: 56 ✭✭optimusgrime


    Thanks for the reply.

    I think I need the registered address to register with the CRO and then the registered compnay before setting up the business bank account so I'm guessing it is tricky to have the bank account from the start.

    Supposing I had already set up by paying as an individual, then gave the company a director loan?

    Can I then write a cheque/bank transfer myself the money paying for company formation costs?

    Thanks


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