Initial set up questions - already PAYE worker

mumbless

Hey,

Am setting up a business currently and have been purchasing equipment slowly over the last year using a personal loan and financing it through my current PAYE job. I have bought alot of equipment in the US as the market over there has a larger range than here. All the equipment is specialised and specifically for the company.

I have not as yet registered my business for set up. I was thinking of starting as a limited company however is this possible or is it the best vehicle to set up given that I hope to continue in my current job possibly for a year maybe longer until this business is well established....so my main questions are....

• Which is the better option registering as a sole trader or a limited company
• Can I sell this equipment already purchased over the year to the established company and charge as expenses of the business when deriving profit

Any help at all would be great on this, I have been researching on the net but it is very difficult to find answers.

I know that I will need to contact an accountant etc at some stage but every € at the moment is going towards equipment etc so i would at least like to start registering the company etc before availing of supplementary services etc.

Thanks again for any help in advance.

dbran

Hi

Really it depends on the nature of your business. From a tax point of view, if you are earning more money then you need to live on then you are better off forming a limited company as there are more tax benifits to a company then to a sole trader.

If it is going to be small then you may be ok just trading as a sole trder and transfering the trade to a limited company at a later date.

Another factor to consider is that some people prefer to deal with a limited company rather then a sole trader from the point of view that they are a sign of a more established business. Also if you believe that you need the protection of limited liability a company may be a better option.

Hope this helps


dbran

Liveit

Well first of all the contact details for the revenue are here:
http://www.revenue.ie/en/contact/index.html
It's best to get information as important as taxation straight from the horses mouth so to speak.

But you can continue on in your job without registering anything as long as you are under 3,000 euro profit.
When you go over this you can register as either a sole trader or a ltd.
Registering as a sole trader is free and all you have to do is complete the TR1 form which is on the revenue site which is linked above (find it just by typing in TR1).

If I am wrong in any of this then feel free to point it out people!

dbran

Hi

Livett is correct that you dont have to register as a sole trader until your income goes over 3k but you will still have to return this income on an income tax return form 12 and pay over the taxes to the revenue.

Also while the revenue site is very comprehensive if somewhat cumbersome to get around, I would be wary of relying on any verbal advise you get over the phone from them. In some cases it has been incorrect or incomplete.

Kind Regards

dbran

mumbless

Thanks dbran and Liveit for the advice..

Yes i will go through the revenue site and see how all applies to my particular situation.

I will register the company as I would hope to earn more than the 3k.

I would be entering the photography line so that is why it is somewhat hard to call on sole trader or limited company in that i hope to expand in time but i will be the main resource with hopefully an aid also in the next few months but the main business costs will be my own time and the actual equipment for the live shoots and postproduction....

I will tackle the revenue site and see what conclusions i come to.

Thank you to both of you for your responses.

ssbob

Hi Mumbless,

Also as a sole trader(as long as you keep receipts etc) you would be entitled to claim these back as expenses to the business.

Where in the country you planning on starting this?

Bob