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Sole tradership query

  • 21-05-2008 10:09am
    #1
    frobisher
    Registered Users, Registered Users 2 Posts: 2,413 ✭✭✭


    I'm looking at starting up as a sole trader and am wondering if different types of work that I do that are within the music industry can all pass through the same system that I will be putting in place (trading name, deductible expenses, bank account etc). I also need to get moving in the right direction in relation to PRSI, tax, business vehicle etc and need some advice on these.

    Anyone got any thoughts or pointers on this? Or perhaps an accountant here may wish to PM me for a chat with a view to working further on it?


Comments

  • #2
    kluivert
    Registered Users, Registered Users 2 Posts: 2,399 ✭✭✭kluivert


    If you post more specfic queries, boarders will be able to point you in the right direction.

    Your business can have more than one trade within the same industry.

    Look at Ryanair, they do flights and car insurance.

    Look at Virgin, they do flights, records, TV etc.

    Deciding whether to set up as a sole trader, company with Limited Liability etc, is more considered with legal risk.

    As a sole trader basicly you stand the risk of losing everything including your home etc, should you run into financial difficulty. You are working for yourself, and therefore will be taxed on your profits.

    As a Ltd company you only lose what you put in, your investment into the company. With a company you will be employeed by the company as a company is a seperate legal entity from you.

    The company is taxed on its profits if any, and you are taxed on your earnings from the company.


  • #3
    Accountant
    Registered Users Posts: 24 ✭Accountant


    You can use the same tax numbers, trading name etc, but diff type trades need to be reported on seperately for tax purposes. Although, these are all consolidated in the end.

    Get in contact if you need further advice.


  • #4
    pigeonbutler
    Registered Users, Registered Users 2 Posts: 666 ✭✭✭pigeonbutler


    Accountant wrote: »
    You can use the same tax numbers, trading name etc, but diff type trades need to be reported on seperately for tax purposes. Although, these are all consolidated in the end.

    Get in contact if you need further advice.

    The rules about different trades being reported separately and the resulting requirements for how losses are used are so flexible as to be redundant. It's highly unusual (even with enormous companies carrying on diverse businesses) for more than 1 trade to be declared as it's possible to claim that all the diverse activities are part of 1 trade.

    Only exception I've seen is where there's an acquisition of a business that qualifies for 10% rate and is thus declared separately after acquisition to maintain the manufacturing rate.


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