full time work & 'side projects'

appsbiz

Hi There,

Im a designer & I am currently employed full time by a company, but I am currently putting together an app for release (and at some point down the line i would imagine I might need to hire extra help for certain areas) and I also occasionally do freelance work so I want to start putting a business frame together for this.

What would be the best business type for this - sole trader or a limited company? Given that I would be intending on keeping my full time job for the foreseeable future.

I am obviously hoping my little venture will work out, but certainly not banking on it and one of my main concerns is if I lost my full time job down the line not being able to claim any benefits because of being registered as a sole trader, can anyone shed any light on this?



Apologies about my complete lack of business knowledge..
and on that note if anyone knows any websites / people / companies that could help me, recommendations would be greatly appreciated and I would have no problem paying as i really just want to focus on the development of the products but also want to make sure im dotting my i's crossing my t's!

Thanks in advance for help

floydowen

Don't know much about which business set up would be better but as I said in a previous thread; your local enterprise board offer allot of guidance and even offer a mentoring service. You should look into it. Probably very cheap or free also

Graham

It really depends on what sort of scale you intend to operate at and over what period of time.

Ltd company is relatively expensive if you're only turning over a few hundred Euro a year.

What sort of designer are you btw? Graphic, web, apps, furniture? :pac:

AndyJB

appsbiz wrote: »

Hi There,

Im a designer & I am currently employed full time by a company, but I am currently putting together an app for release (and at some point down the line i would imagine I might need to hire extra help for certain areas) and I also occasionally do freelance work so I want to start putting a business frame together for this.

What would be the best business type for this - sole trader or a limited company? Given that I would be intending on keeping my full time job for the foreseeable future.

I am obviously hoping my little venture will work out, but certainly not banking on it and one of my main concerns is if I lost my full time job down the line not being able to claim any benefits because of being registered as a sole trader, can anyone shed any light on this?



Apologies about my complete lack of business knowledge..
and on that note if anyone knows any websites / people / companies that could help me, recommendations would be greatly appreciated and I would have no problem paying as i really just want to focus on the development of the products but also want to make sure im dotting my i's crossing my t's!

Thanks in advance for help

Hi AppBiz,
Good on you for your get up and go attitude, lots more of that is need.

You'll need to predict your potential turnover level from your App and freelance work. If it goes above defined levels you will be required to register with the revenue for VAT. That's on top of your already existing tax return requirements.

Have a read of the Revenue info page on Irish Vat requirements.

If you remain as a PRSI employee you can still register for VAT in relation to your other business interests, but, being VAT registered may block any welfare entitlements. Speak with the Dept of Social welfare or an accountant about potential issues.

Best of luck.
AJB

Trojan

You can usually get a first meeting with an accountant for free - I'd do that. The mentoring from the CEB's and start your own business courses are good (check out Brian O'Kane's one too, he literally wrote the book on it).

One important thing to check out is your employment contract.

Your employer may own everything you create, even at home and on evenings/weekends, if there is that clause in the contract. (Some employers will happily let you work on your own stuff despite that clause - get that in writing from them.)

Peterdalkey

Essentially as long as you remain in regular paid employment with you and your employer paying the standard rate PRSI etc, your benefits are protected. You do need to return any other income to the revenue, so make sure you make a full tax return each year. It would be a good idea to get yourself set up by an accountant/tax advisor for online tax returns and hget them to show you the ropes for the first year. If you do have queries, call the local Rebvenue office, they are extremely helpful and their advice is free!!

Have a look through the forms and advice here.
http://www.revenue.ie/en/tax/it/tax-return-forms.html

appsbiz

Thanks for the advice and helpful links everyone, Think I am going to go with sole trader to start with and then see how it progress - I can always scale up

Trojan wrote: »

One important thing to check out is your employment contract.

Your employer may own everything you create, even at home and on evenings/weekends, if there is that clause in the contract. (Some employers will happily let you work on your own stuff despite that clause - get that in writing from them.)

A massive thanks for pointing out this one, I have scanned business books.. had a glance at alot of areas, but this never crossed my mind or came up in anything I read. & Will definitely give that book a go to.

Graham wrote: »

What sort of designer are you btw? Graphic, web, apps, furniture? :pac:

Currently Im a lead designer with an app development company so I work on everything from the UX & UI to the icon and web design.