What to do:
• If you are trading under your own individual name e.g. Mary Murphy, you will not need to register your business name with the Companies Registration Office.
• If you are trading under another name apart from your own individual name e.g. XYZ Enterprises, you will then need to register with the Companies Registration Office. Please note that even if the name you require is in use, the Companies Registration Office will still allow you to use this name, as there is no restriction on the amount of times a business name can be registered.
• To open up a bank account, you will need to request a form to open a bank account for a sole trader (not a company). Please note you will need to have your business name registered before you can open a bank account (if you are trading under another name that is not your personal name).
• To register for Income Tax and/or Vat etc with Revenue, you will need to fill out a TR1 form which you can download from www.revenue.ie
• Please note that in order to register for Income Tax and/or Vat, you will have to have your business name registered, and your bank account open as two questions asked on the TR1 form are your business registration number and your business bank account details.
Other Things to Note:
• It is possible at a later date to alter the business format, e.g. if you decide at a later date to register a Limited company, it is possible to do so.
•You do not need to file Accounts with the Companies Registration Office every year but it would be useful to have your accounts prepared because
(a) you will have to file a Return of Income with the Revenue Commissioners under the self assessment scheme every year
(b) If you are looking for (or will be looking for) grant aid or bank finance
• As a sole trader you absorb all the profits…and all the debts and risks of the business.
• Sole Traders do not pay Corporation Tax, but will need to file a Return of Income Tax with the Revenue Commissioners every year.
• The main difference between a Limited Company and a Sole Trader is that a Sole Trader does not have limited liability. This means that the owner of the business is responsible personally for any profits/losses incurred by the business. As a Limited Company, the personal assets of the directors are protected and its only the assets of the Company that become liable should a liable situation arise.
For more information you can visit www.getregistered.ie or call Dineen Company Formations on 045-480448
