PAYE employee - Part time retail business

bizhelp77

Hi all

I am thinking of starting a part time online retail business with a friend but I work full time and she is a sahm who's tax credits go to her hubby.

Can anyone give some insight into the best way to do this to minimise tax we would pay on profit we make and what type of business would be best to set up? Sole trader under her name or mine or partnership or ?

Honestly have not got a clue about all this area.

Thanks

Alan Shore

If you have not got a clue that go and see an accountant.

Every different business will have different needs.

A partnership might be a good start. You will pay tax at your marginal rate 52% or 31% she will pay tax at 20% PRSI if profit is over €5,000 and USC at 2% if profit is over €10,036.

If you think profits are going to be higher and you don't need to draw our your share of profits or investment of profits is required then a company might be a better option.

bizhelp77

Thanks Alan

Planning to go see an accountant alright, have done the consulting on the side before and swore I wouldnt do it ever again without an accountant, too messy tax wise.

Cheers for that info though, partnership it is I reckon!

mozattack

It is good to have foresight but focus on the business first and then later consider tax... making the profit is the hardest part & good luck with the venture.