Setting up a business name

Xcellor

My missus is setting up a business and she is on the CORE.ie website. Initially she is planning on being a sole trader but changing to LTD since she will partner up with another individual. Is it possible to change this later on? i.e. set up as sole trader now and then change later.

Cheers,
X

antoinolachtnai

The short answer is yes.

The long answer is that she has to be very careful about going into business with another person. This is called a 'partnership' and can potentially throw up legal difficulties.

Xcellor

Thanks for the feedback. I think its important to get these thigns sorted out in the beginning so choosing the right type of company is important... In the CORE website the following optiosn are available.

Individual

Partnership

Body corporate


Does individual = sole trader
Partnership = as is
body corporate = ltd ?

Just a bit confused with the definitions and can't see any clear indications from googling.

Cheers,
X

Fergal C

Xcellor wrote: »

...
Does individual = sole trader
..

Yes.

If you are forming a limited company you should probably get an accountant to do it for you, to ensure that you get the legals right. If going into business with someone else and forming a partnership it is recommended that you have a written partnership agreement covering topics such as;

• Duties and responsibilities
• Wages / drawings
• Holidays etc
• Splitting profits
• Dealing with losses
• One person wanting to leave the business
• Closing the business
• Selling the business
• An unfortunate event where one partner can no longer work in the business
• Expanding the business

Good luck with it!