Setting up a consulting business

Sammy Sam

Hi all,

I am currently reviewing employment terms on behalf of a family friend (25) who is working for a manufacturing company in Dublin in their operations department. His current salary is circa 50k plus expenses.

He is also interested in acquiring an investment property to rent out in a university district. I am interested to hear your views on whether it might be a good idea for the individual to set up a consulting business and then be sub-contracted by his current employer. He would then also be able to purchase the property in the company's name.

My question here is what are the potential benefits/drawbacks of this idea or is it even a feasible plan worth considering?

Thanks.

smcgiff

Sammy Sam wrote: »

Hi all,

I am currently reviewing employment terms on behalf of a family friend (25) who is working for a manufacturing company in Dublin in their operations department. His current salary is circa 50k plus expenses.

He is also interested in acquiring an investment property to rent out in a university district. I am interested to hear your views on whether it might be a good idea for the individual to set up a consulting business and then be sub-contracted by his current employer. He would then also be able to purchase the property in the company's name.

My question here is what are the potential benefits/drawbacks of this idea or is it even a feasible plan worth considering?

Thanks.

First of all, if he is 100% contracted to one company Revenue will likely treat him as an employee. There are a few indicators, and the company paying expenses is another indicator that he is an employee.