Should I register as a business?

radiodrive · 28-05-2017 1:09pm #1

Hi everyone,
I have an idea for a small online business. The idea isn't likely to make a massive amount of money but I'm confident it will generate a small amount of extra income for me throughout the year. My question is, do I or should I register as a business before I start or wait and see how things go. I work full time and this is likely to be something I spend a few hours a week doing.
Any advice would be greatly appreciated.

duploelabs · 28-05-2017 1:40pm

What research have you done?

radiodrive · 28-05-2017 1:50pm

In terms of registering as a business I have looked on the CRO website. I've read that if sales are under 75,000 I don't need to register for VAT. Obviously, I'm confident I won't come any where close to that figure. I presume I need to register regardless as a sole trader?

jimmii · 28-05-2017 1:55pm

It depends on the amount of extra income if it's just a couple of thousand then it doesn't matter if it's going to be run as a proper business and not just selling a fee things on eBay then it's best to. I seem to recall the cut off is around 5k not sure if that is still the same today.

radiodrive · 28-05-2017 2:01pm

Thanks Jimmii, It would essentially be a craft business that would be selling to individuals and possibly niche businesses. As I mentioned, I doubt I'd be making much more than a few thousand a year. It's worth doing as it really requires little labour after the start but if I had to register as a business and submit paper work it might be more hassle than its worth.

jimmii · 28-05-2017 2:48pm

You'll still have to file an additional tax return but if it's only small you can do it online as part of paye I think. It's worth reading up on and doing up some sort of projections so you can see if you are likely to run into any accounting issues like that.

Should I register as a business?

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