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At what Stage Do You Set Up As A Business

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  • 14-04-2021 1:22pm
    #1
    MissEm123
    Registered Users Posts: 1 ✭


    I sell handmade jewellery which I make at home, I sell it to shops and businesses.
    I only started to make some money out of it. At what stage do I set up as a business and start paying tax/vat and get an accountant. I am not making enough for all that, only making in the low thousands so far and on Instagram and have a website. Shops want invoices etc. from me and I don't have a vat number as I am only an individual. Would anyone have any advice for me?

    Thanks

    MissEm123
    Tagged:


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    #2
    Axwell
    Moderators, Business & Finance Moderators, Computer Games Moderators Posts: 10,461 Mod ✭✭✭✭Axwell


    Go speak to an accountant, most will give a free consultation. Get some advice from them and see what you can claim as expenses the business, what you can't and how best scale from where you are now to being VAT registered etc.

    Even if you are making low thousands as you put it you will have to pay tax on what you are earning, in the low amounts the tax will be nothing or negligible but since you are buying stock and selling etc you are better getting advice at this stage from an accountant and seeing what you can save as business costs. If you know other jewellers or anyone else with a business ask them for a recommendation of who their accountant is.


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    #3
    markmoto
    Registered Users Posts: 788 ✭✭✭markmoto


    MissEm123 wrote: »
    I sell handmade jewellery which I make at home, I sell it to shops and businesses.
    I only started to make some money out of it. At what stage do I set up as a business and start paying tax/vat and get an accountant. I am not making enough for all that, only making in the low thousands so far and on Instagram and have a website. Shops want invoices etc. from me and I don't have a vat number as I am only an individual. Would anyone have any advice for me?

    Thanks

    MissEm123


    When you go to accountant for consultation bear in mind they are living of your income. Try to learn how to do bookkeeping etc your self


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    #4
    adrianw
    Registered Users Posts: 236 ✭✭adrianw


    markmoto wrote: »
    When you go to accountant for consultation bear in mind they are living of your income. Try to learn how to do bookkeeping etc your self

    MissEm, also be aware that doctors live off you being sick so learn how to self heal, opticians live off your eye sight deteriorating so learn how to make your own glasses and funeral directors live off you dying so learn how to build your own coffin.


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    #5
    markmoto
    Registered Users Posts: 788 ✭✭✭markmoto


    adrianw wrote: »
    MissEm, also be aware that doctors live off you being sick so learn how to self heal, opticians live off your eye sight deteriorating so learn how to make your own glasses and funeral directors live off you dying so learn how to build your own coffin.


    Exactly my point, but if you cant learn so pay the money. :)


  • Options
    #6
    ulster
    Registered Users Posts: 209 ✭✭ulster


    Definitely set up asap.

    Or at the very least, I'd agree about employing the services of an accountant. Especially if you have no experience paying tax/ bookeeping.

    They'd be able to give you tax advice on whether you should operate as a sole trader or LTD company.

    Setting up as a LTD company costs about 200-300 euro (if you do it yourself, like I did, I followed an IT contractors guide on LinkedIn, it's 50 euros).

    I think setting up as a sole trader might be cheaper cos I don't think you need to register with the CRO if you're trading under your own name.

    VAT for goods, I think you have to earn over 70000 euros before you need to register for VAT.


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    #7
    condra
    Registered Users Posts: 3,849 ✭✭✭condra


    While not super urgent, I'd start researching the various red tape hoops you need to jump through to set yourself up as a sole trader. Revenue aren't gonna send a swat team around over a couple of hundred quid but if things start going well, you'll want your ducks in a row sooner rather than later, for organisational purposes if nothing else.


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    #8
    JohnRock
    Registered Users Posts: 99 ✭✭JohnRock


    You need to register as being self employed when you generate more than €5k from your business and your PAYE income is less than €30k see here

    VAT threshold for goods is €75k

    Advice on when to setup as a sole trader or limited company


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    #9
    PickYourName
    Registered Users Posts: 412 ✭✭PickYourName


    MissEm123 wrote: »
    I sell handmade jewellery which I make at home, I sell it to shops and businesses.
    I only started to make some money out of it. At what stage do I set up as a business and start paying tax/vat and get an accountant. I am not making enough for all that, only making in the low thousands so far and on Instagram and have a website. Shops want invoices etc. from me and I don't have a vat number as I am only an individual. Would anyone have any advice for me?

    Thanks

    MissEm123

    Firstly, well done on getting started and generating sales.

    You've a few key decisions to make, in particular sole trader or limited company and whether or not to register for VAT (sole traders can register for VAT, by the way, not just limited companies).

    There are advantages and disadvantages to both decisions; there's no answer that's "right" for everyone.

    Whatever happens, if you are generating income, you will have to register with Revenue.

    The best person to advise is an accountant who can talk through the issues you need to consider and what you need to do. Unfortunately, there is a huge range in capabilities in accountants: some are brilliant and some are disastrous and will end up costing you. I'd suggest the best way of finding a good one is to ask around others working in the same sector for recommendations. I doubt you'd need an accountant for anything other than initial advice and then perhaps once a year to do tax returns. For day-to-day stuff, you can manage yourself, or use a bookkeeper (again, go be direct recommendation).

    As for when, given you've already started, I'd say now.

    Another thing worth doing is to contact your Local Enterprise Office for advice; a general start-your-own-business couse which they run, is well worth it even if you've already started. They're also useful for general advice, running mentoring programs for example.


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