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Opening a retail store

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  • 06-01-2014 7:54pm
    #1
    joegdoyle
    Banned (with Prison Access) Posts: 107 ✭✭


    to open a fashion retail store is it best to set it up as a limited company?
    Also are there any legal restrictions?


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    #2
    booladen
    Registered Users Posts: 33 ✭booladen


    joegdoyle wrote: »
    to open a fashion retail store is it best to set it up as a limited company?
    Also are there any legal restrictions?

    Depends on your circumstances.
    If you set up as a Sole Trader you burden the debts that the business raises, so if your business failed and you lost all of the BUSINESS'S money you would be liable to pay the rest from your own pocket (personal money from outside the business).

    Limited company is where the company is seen as its own entity like you or me and is responsible for its own debts.

    Thats as far as I know anyway check out revenue.ie and if you think the venture is high risk.


    Anyone is free to correct me if I'm wrong :)


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    #3
    joegdoyle
    Banned (with Prison Access) Posts: 107 ✭✭joegdoyle


    yeah think I'll start Limited company


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    #4
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Don't rush to register a Limited company until you're absolutely sure you need/want one.

    Make sure you understand the costs and legal burdens that you're signing up for.


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    #5
    lucky john
    Registered Users Posts: 838 ✭✭✭lucky john


    joegdoyle wrote: »
    to open a fashion retail store is it best to set it up as a limited company?
    Also are there any legal restrictions?

    Not sure what you mean by legal restrictions. There's no "legal" reason to set up as a ltd company. It your choice but take advise from your accountant into consideration.

    The two big advantages of a company is limited liabilities if things go wrong and the 12% corporate tax rate.

    These days any money you borrow will come with a personal guarantee from you to your bank. I would expect that supplier's to a new business will be reluctant to leave themselves exposed to you so won't extend much credit(if any) either. So the limited liability is not as compelling a reason to go ltd as it once was.

    The 12% tax rate is a plus but only if you expect to make a nice profit over and above the wage you intend to pay your self.

    When you consider the extra paperwork, costs and responsibilities involved with setting up as ltd it's off "limited" advantage to my mind. This is just my opinion so you should definitely take professional advice. Its easy to go from a sole trader to Ltd but a bit of a hassle to go the opposite way.


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