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set up company

  • 07-11-2010 9:14pm
    #1
    work
    Registered Users, Registered Users 2 Posts: 661 ✭✭✭


    Hi, first time to look at this section. I am wondering does anyone know the pros and cons of setting up a compony over staying self employed froma tax perspective (or others if they exist). Is there any material available on this?
    Any ideas greatly appreciated.


Comments

  • #2
    [Deleted User]
    Posts: 23,339 ✭✭✭✭ [Deleted User]


    By staying self employed I presume you mean being a sole trader ? To have a limited company you'll need a 2nd person other than yourself to be a director. No real cons as such, easier to stay on the straight and narrow with a Ltd company, you'll have a company bank account, revenue will send out requests (demands if you like) for VAT, paye, prsi etc in advance of when they are due. If you're half organised with a decent accountant you won't regret going with the limited company.


  • #3
    markgb
    Registered Users, Registered Users 2 Posts: 16 ✭markgb


    Came across this recently - might be useful

    http://bloggertone.com/finance/2010/11/04/limited-company-vs-sole-trader-mind-map-graphic/


  • #4
    knipex
    Registered Users, Registered Users 2 Posts: 2,018 ✭✭✭knipex


    work wrote: »
    Hi, first time to look at this section. I am wondering does anyone know the pros and cons of setting up a compony over staying self employed froma tax perspective (or others if they exist). Is there any material available on this?
    Any ideas greatly appreciated.

    The biggest advantages depend on the job you do.

    Some larger companies will prefer to deal with a limited company.

    The main advantage is that in the event of bad debts etc forcing you to close you have limited liability in respect of the outstanding debts. The debts rest with the company and not with you personally.


  • #5
    DamoKen
    Registered Users, Registered Users 2 Posts: 1,269 ✭✭✭DamoKen


    knipex wrote: »
    The biggest advantages depend on the job you do.

    Some larger companies will prefer to deal with a limited company.

    I'd agree with this. My last and current IT contract came down to me and one other equally qualified guy. I trade as a limited company, he was a sole trader and I got it based on that. Just less hassle from their perspective.


  • #6
    markgb
    Registered Users, Registered Users 2 Posts: 16 ✭markgb


    DamoKen wrote: »
    I'd agree with this. My last and current IT contract came down to me and one other equally qualified guy. I trade as a limited company, he was a sole trader and I got it based on that. Just less hassle from their perspective.

    It takes away any ambiguity around tax status. Revenue could under certain circumstances deems that a sole trader working as a contractor is in fact an employee and demand income tax from the employer. That's a big risk for the employer to take.


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