Company or sole trader please help.

reegiscz

Hi

I own 1 website and working on another one. I hope they going to make a profit in some time.

My question is can i set up as a sole trader or do i need to set up a limited company for the websites or can i have some revenue from it without setting up a sole trader or limited company?

Also i work full-time and plan to keep my job and run the websites.

Regards

Avatar MIA

There is no requirement to set up as a Limited company.

There are benefits (Limited Liability etc.) and downsides (greater bureaucracy).

If you trade and not a company then you're a sole trader (if on your own).

You'll need to register with the CRO (not just for companies) if you have a business name and with the Revenue for tax purposes.

reegiscz

Sorry i have put my question in wrong way. I know difference between sole trader and limited company.

I try ask differently.

Do i need set up either of these structures at all?
I do expect some profit form my websites so can i own it and have revenue from it without setting up a sole trader or limited company?

Thank for your response anyway

Avatar MIA

reegiscz wrote: »

Sorry i have put my question in wrong way. I know difference between sole trader and limited company.

I try ask differently.

Do i need set up either of these structures at all?
I do expect some profit form my websites so can i own it and have revenue from it without setting up a sole trader or limited company?

Thank for your response anyway

That's what I thought you were asking - that's what I answered.

To be clearer - yes you need to be one or the other.

daveville30

what s the website and how do u go about setting one up.

Avatar MIA

daveville30 wrote: »

what s the website and how do u go about setting one up.

www.cro.ie
www.revenue.ie

Generally, I don't think you need to contact an accountant if you have a fair idea of what you're doing at the start, but some do benefit from an accountant.

Avatar MIA
Accountant

reegiscz

Thank you a milion :-)

If i can bother u with one more question.
I am still employed and i plan to keep my job and running the websites in the same time. Wheter i set up a sole trader or limited company, does it affect instantly my current job taxes or it depends on the profit from the company (or sole trader)?

Thanks a lot

Avatar MIA

You can stay as you are with your PAYE job, keep all your tax credits/tax bands with your employer.

When you file your business accounts with Revenue they will then combine your Gross PAYE salary and your business profits (assuming you make a profit), taking account your your full tax credits and tax bands, the amount you've paid by PAYE and raise a tax charge (tax liability) on you for the amount due.

You're probably fine, but just check with your employment contract that you're not contravening anything by setting up this business.

Good luck