I'm thinking of setting up my own business.

fresheire

After good few unsuccessful attempts in getting a job I decided to set up my own business.

I gave my idea a lot of thought and made the decission it's worth the risk. Now having been employed by others in my career I never gave any thought to what's on my payslip - just been happy to see what was coming to my pocket and that's all. I went to few websites that had some information on setting up new business but it's bit unclear to me, especially case studies of taxation/cut off points/ etc. etc.

I will be going to my local enterprise board to get some more information/explanation and help but I thought maybe here I'll find some answers.

1) Sole trader vs. Company - which one should I be ? I will be working from home on my computer and sending things by post allover the world (hopefully) - I don't seem to grasp the concept of both terms

2) Taxes and charges: I know I'll have to pay VAT on goods sold. I know I will need to contribute to USC and some other charge (health or smth). When all of that is paid I'll have to pay the income tax of 20 or 41% depends on my yearly revenue. However do I include my salary before I pay the income tax ? Or should I not count that as I am my own boss ?

If my company will exist online uder .com domain does it need to be registered in Ireland or any domain provider will do ?

I understand my profits are what's left after all the taxes and expenses. Do I have to buy an expensive software to keep track of all incoming and outgoings or can I use office type of program ?

Thank you for your help

lucky john

These are fairly basic questions you need an understanding off before you set up your business. First port of call should be a start your own business course with your local enterprise board and then take it from there.

Graham

There's hundreds of explanations online to get you started. Go to google.ie and search for "sole trader or limited company".

Also try the search at the top of the forum here.

Mooby

I'd probably start as a sole trader. You can register for VAT and then charge VAT on goods/services and claim your VAT back on your phone bill etc.
It is more expensive to start up as a Ltd company.

HansHolzel

With sole trader you are liable for all debts accrued but with a limited company you are not.

If your business idea doesn't require much investment to get going, becoming a sole trader is almost certainly better. There is less paperwork too.

But do a course.

Freepass

Deciding on whether to be a sole trader or limited company really depends on what type of money that your business starts to bring in! Remember with VAT- You only have to register for VAT if your company passes the VAT threshold...

You don't need an expensive packages.. you can set up excel spreadsheets that you can fill out to keep track of your business...

I know people on here advise to go on a course.. I advise you to speak to a small accountant that knows his/her stuff and they will advise you accordingly and set you sample books and records and so on for you..

Peterdalkey

There is an awful lot more to running a businesses than accounting/bookkeeping. The advice to do a “start your own business” course is very sound indeed. Over the years they have tweaked the content of these courses to provide a great quality broad range syllabus covering the essentials. Any experienced businessperson would give you the same advice.

Mooby

Freepass wrote: »

Deciding on whether to be a sole trader or limited company really depends on what type of money that your business starts to bring in! Remember with VAT- You only have to register for VAT if your company passes the VAT threshold...

You don't need an expensive packages.. you can set up excel spreadsheets that you can fill out to keep track of your business...

I know people on here advise to go on a course.. I advise you to speak to a small accountant that knows his/her stuff and they will advise you accordingly and set you sample books and records and so on for you..

But it can be useful to register for VAT even if you haven't passed the threshold.

miss tickle

Mooby wrote: »

But it can be useful to register for VAT even if you haven't passed the threshold.

It can depend, as far as I know if you register you have to charge your customers VAT, if it's business to business, then that's ok because they can claim the Vat back themselves, however if your customer is a just a consumer, they can't, if your sure you won't reach the threshold it may be best not to register, however if you do go over the threshold you are liable for Vat on all sales for that year, I think.

jimmii

miss tickle wrote: »

It can depend, as far as I know if you register you have to charge your customers VAT, if it's business to business, then that's ok because they can claim the Vat back themselves, however if your customer is a just a consumer, they can't

Its only going to make a difference if its B2B registering vs not registering makes little difference to the price you are selling at to the public.

jimmii

I registered for VAT immediately even though I really didn't have to. If some of your suppliers are in Europe it means that less of your money is tied up when making orders from them (as you don't pay VAT to them at the time) and it also looks better when dealing with other businesses too just because if you don't have one it means your turnover is very low!