Setting up as a self-employed sole trader is the simplest and quickest way to start a business. There isn’t much paperwork to do. There are no registration fees to pay, but you must register with the Revenue Commissioners for tax and National Insurance/PRSI purposes.
Anyone can set up in business as a self-employed sole trader, although for certain types of work you may need a licence or permission from your local authority or county council.
Knowing how long to retain financial records and maintaining simple accounts is straightforward, and if finance is done right from the beginning, the start can make your life in business a lot easier.
What Is The Difference Between A Company Name And A Business Name?
In Ireland, the company name must be on display outside every place where business is in operation. When you incorporate your business, you are required to register your company name which creates a separate legal entity. The company name is separate and distinct to the people who run the company.
Any individual, partnership or corporate body that wish to operate under a name other than their true names, must register a business name. A business name is used to make the true names of the individual, partnership or corporate body public. This is necessary as they are the legal entity behind the business name.
Sole Trader or Limited Company?
Setting up as a sole trader is relatively straight forward and is the quickest option when forming a business. Becoming a sole trader however, means you will miss out on the benefits of incorporating your business.
The biggest positive in registering a business is that, limited companies can avail of corporation tax at 12.5%. Sole traders on the other hand pay personal tax rates of up to 54%.
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