Can a 17 year old become a sole trader?

OnlyTheRed · 30-09-2022 12:33AM #1

The title is pretty self-explanatory, I'd like to have an LTD but I believe I have to be 18 to own the shares (please correct me if I'm wrong as this would be ideal) and if I use a proxy I'll have to pay 33% of the companies worth in CGT. I believe I can register as a sole trader but I'm not sure about having a business bank account. Any help/advice is appreciated.

Thank you.

Gloomtastic! · 30-09-2022 05:15AM

What sort of business are you thinking about?

is it a business, where if something went wrong, your customers or someone working for you could come after you for a refund or compensation? That’s why you need a Ltd company to protect your personal assets. But Ltd companies come with added paperwork and you have to have your accounts audited.

If it’s just you offering a service, like painting or decorating, then you could get away with being a sole trader. You can use your existing personal bank account as a sole trader.

Here’s a link to an Excel spreadsheet for accounts for sole traders/small businesses. Keep receipts for everything.

https://www.dropbox.com/s/5p32c5jo4cfybp2/Accounts%20Template%20with%20VAT.xls?dl=0

Any more questions, just ask.

OnlyTheRed · 30-09-2022 03:23PM

I've weighed up the pros and cons and after getting a good bit of advice elsewhere I'm certain that an LTD is the better option. I am under 18 so my main concern is legally being able to own/set up a business. If I can own my shares and become a director when I turn 18 for a limited company that's perfect but I'm not sure I can. Next best thing is to become a sole trader and when I turn 18 put all my assets into an Ltd. If I can't do that, my brother has already set up an LTD but to take my shares from him when I turn 18 I believe I'll have to pay 33% CGT on the company's value so that's a last resort.

Thanks

Mrs OBumble · 30-09-2022 04:08PM

If your profit (roughly business income minus business expenses) is less than €5000 per year, then you do not even have to register as self employed.

If its more, then you have to register with Revenue as a sole trader and do full rax returns each year. I cannot see any reason why a 16 year old cannot do that.

Registering a limited company is a different thing again.

OnlyTheRed · 30-09-2022 06:17PM

https://www.boards.ie/discussion/comment/119685653#Comment_119685653

Is owning shares in a limited company possible for a 17 year old?

Would be the best thing for me/my business.

Thanks.

walterking · 01-10-2022 12:53PM

You may be jumping the gun and overthinking things

Unless you have stumbled on some sort of magic beans, your company will not be of huge value within a year. Running and growing a company that creates value takes a huge amount of work and time.

The value is in a unique selling point - simply having a website or a small sideline business that can easily be replicated, will not create any sort of value that would have you worried about CGT.

Register as a business name and if you find its working, simply open a ltd company when you turn 18.

nicegood · 13-10-2022 09:23AM

a little young,can be shoes seller

nicegood · 13-10-2022 09:23AM

https://www.boards.ie/discussion/comment/119737872#Comment_119737872

cn2009shoes.com

DubCount · 14-10-2022 08:20AM

IMHO the issue here is that at 17, OP is considered a minor. That limits his ability to contract. I dont think there is any prohibition on a minor owning shares, but it may make any contracts in buying/selling shares etc not enforcable. It may also impact on the ability to set up a company. It would equally impact on entering contracts as a sole trader. Any contracts OP enters could be considered void because he is a minor.

OP - firstly well done on being interested in this type of thing at your age. We need a lot more young people setting up businesses and generating income and wealth. Having said that - is this a business you could wait for a couple of months to start, when you would be 18, and not a minor any more.

Can a 17 year old become a sole trader?

Comments