For various reasons we went Limited very early in the gestation of our online industry forum. But during my last conversation with the accountant we agreed to give it one more year before rolling back to sole trader, mainly due to the unnecessary expense and red tape.
The first step in any of my ventures has been to register a limited company. As starting up any business is a risky undertaking the level of protection that a Ltd. company gives you ensures a certain peace of mind. Also for some strange reason other companies take you more serious as a ltd. company...
We went limited for the exact same reasons as Evertb, also because we would have been going into a partnership rather that a sole trader it seamed to make sense.
I am more concerned with the lack of sick benefit, unemployment benefit etc. Self employed pay taxes too but get none of the benefits and only get the state pension a year later than PAYE. Tempted to change to a one person LTD company and become an employee of that.
I keep hearing about extra paperwork and expense for being LTD. At the moment I spend around a grand on my accountant per year, file my VAT every 4 months and file my tax return at end of October. What extra red tape is there with Limited companies?
Speaking from experience, you will increase your paperwork burden if you need audited accounts for grants or late filings. And those audits will cost three times a normal fee plus you will pay penalties of EUR3 a day to CRO when late.
Be careful around benefits. You will be a director of the company so you live in a no-mans land between "self-employed" and "PAYE". e.g. you can't get dentist stuff done on PRSI because you don't pay full-whack PRSI etc.
If I was not going to be a normal PAYE employee at the end of it, then there is no point in me going LTD at all. I thought that I would just revert back to my previous status when I had a normal job, dole, sick pay etc.
13 comments so far
as a service provider originally into a large multi national we had to be limited. The liability aspect is important.
1 year, 9 months ago by conoro
Register limited or be able to change your name if your sole trader status is compromised.
1 year, 9 months ago by topgold
For various reasons we went Limited very early in the gestation of our online industry forum. But during my last conversation with the accountant we agreed to give it one more year before rolling back to sole trader, mainly due to the unnecessary expense and red tape.
1 year, 9 months ago by EirePreneur
The first step in any of my ventures has been to register a limited company. As starting up any business is a risky undertaking the level of protection that a Ltd. company gives you ensures a certain peace of mind. Also for some strange reason other companies take you more serious as a ltd. company...
1 year, 9 months ago by Evertb
We went limited for the exact same reasons as Evertb, also because we would have been going into a partnership rather that a sole trader it seamed to make sense.
1 year, 9 months ago by CiaranR
In a past life, limited was the only path to State grants. Going limited keeps your house free of demand payments.
1 year, 9 months ago by topgold
I am more concerned with the lack of sick benefit, unemployment benefit etc. Self employed pay taxes too but get none of the benefits and only get the state pension a year later than PAYE. Tempted to change to a one person LTD company and become an employee of that.
1 year, 9 months ago by johnm
One word: DO!
1 year, 9 months ago by Evertb
I keep hearing about extra paperwork and expense for being LTD. At the moment I spend around a grand on my accountant per year, file my VAT every 4 months and file my tax return at end of October. What extra red tape is there with Limited companies?
1 year, 9 months ago by johnm
very little else. You need to file your accounts with the CRO every quarter but apart from that I really see little different..
1 year, 9 months ago by Evertb
Speaking from experience, you will increase your paperwork burden if you need audited accounts for grants or late filings. And those audits will cost three times a normal fee plus you will pay penalties of EUR3 a day to CRO when late.
1 year, 9 months ago by topgold
Be careful around benefits. You will be a director of the company so you live in a no-mans land between "self-employed" and "PAYE". e.g. you can't get dentist stuff done on PRSI because you don't pay full-whack PRSI etc.
1 year, 9 months ago by conoro
If I was not going to be a normal PAYE employee at the end of it, then there is no point in me going LTD at all. I thought that I would just revert back to my previous status when I had a normal job, dole, sick pay etc.
1 year, 9 months ago by johnm