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Registering a business to a rented house?

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  • 29-04-2014 1:50pm
    #1
    soulphish
    Registered Users Posts: 67 ✭✭


    Every lease I've signed has a clause in it saying that I cannot register a business to the same premises.

    What effect does this have on the landlord? Does it affect something with his tax, or rent collection? Would they even know if I did register a business to the address?

    I want to start a consultancy business, so none of the business will be conducted at the house (no customers, etc. Only paperwork, tax, etc.). Any advice?


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    #2
    Eircom_Sucks
    Registered Users Posts: 3,193 ✭✭✭Eircom_Sucks


    soulphish wrote: »
    Every lease I've signed has a clause in it saying that I cannot register a business to the same premises.

    What effect does this have on the landlord? Does it affect something with his tax, or rent collection? Would they even know if I did register a business to the address?

    I want to start a consultancy business, so none of the business will be conducted at the house (no customers, etc. Only paperwork, tax, etc.). Any advice?


    Might be that if you incurred bills or large debts , u could basically up and walk , i had somebody set up a breakdown repair company at a house i rented out , these people then left with a huge bill for over €25k , i hadn't a clue , luckily its sorted but it could have got messy

    Surely where ever you're business takes place is where you register it


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    #3
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    Your trading address and your registered address are not the same thing. With permission you can register your business at your accountant's or solicitor's office (or anywhere else).
    From the landlord's perspective it can get messy for several reasons, clauses in the original deed, neighbour hassle, etc. I've known of a case where a couple set up a catering business in a rented house, landlord had to buy an entirely new kitchen (including floor) after he got them out!


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    #4
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    pedroeibar1 wrote: »
    Your trading address and your registered address are not the same thing. With permission you can register your business at your accountant's or solicitor's office (or anywhere else)

    I don't have an accountant or solicitor. And my trading address will be where ever the customer is. I would be visiting their premises, etc. So can't do any harm to this house. Do you need to register both a trading address and "registered address"?

    Are there any commercial charges? Like what shops have to pay?


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    #5
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    Eircom_Sucks wrote: »
    Surely where ever you're business takes place is where you register it

    My business won't have any static address. It will be in shops, restaurants, and hotels. Where ever a client is. So that makes things more difficult.


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    #6
    onedmc
    Registered Users Posts: 455 ✭✭onedmc


    soulphish wrote: »
    My business won't have any static address. It will be in shops, restaurants, and hotels. Where ever a client is. So that makes things more difficult.

    You should not be trading from a residental address it's against planning laws.

    If its a limited company your location should has to have a notice to let people know the companies registered at that address (brass plate)

    Landlord dosnt want to have you registered and cant allow you to trade from his address. If he allowed you to register and you then skip town he may have to get involved in legal issues if creditors come after you. Simple things like providing evidence that he did due diligence on you will cost hundreds in solicitors letters.

    Better for him that you spend a few quid letting the accountant take care of it as the account has profession indemnity that will cover these types of issues.


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    #7
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    onedmc wrote: »
    You should not be trading from a residental address it's against planning laws.

    If its a limited company your location should has to have a notice to let people know the companies registered at that address (brass plate)

    Landlord dosnt want to have you registered and cant allow you to trade from his address. If he allowed you to register and you then skip town he may have to get involved in legal issues if creditors come after you. Simple things like providing evidence that he did due diligence on you will cost hundreds in solicitors letters.

    Better for him that you spend a few quid letting the accountant take care of it as the account has profession indemnity that will cover these types of issues.

    That makes sense. Thanks!


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    #8
    Shiraz 4.99
    Site Banned Posts: 824 ✭✭✭Shiraz 4.99


    onedmc wrote: »
    You should not be trading from a residental address it's against planning laws.

    If its a limited company your location should has to have a notice to let people know the companies registered at that address (brass plate)

    My wife operates her business from our privately owned home.
    She can also write off a percentage of the household bills against company profits.
    This is all on the advice of her accountant & we've never heard anything different from Revenue.


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    #9
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    onedmc wrote: »
    You should not be trading from a residental address it's against planning laws.

    If its a limited company your location should has to have a notice to let people know the companies registered at that address (brass plate)

    Landlord dosnt want to have you registered and cant allow you to trade from his address. If he allowed you to register and you then skip town he may have to get involved in legal issues if creditors come after you. Simple things like providing evidence that he did due diligence on you will cost hundreds in solicitors letters.

    Better for him that you spend a few quid letting the accountant take care of it as the account has profession indemnity that will cover these types of issues.

    I seriously thought its against the law to have a LTD company registered at a residential address. There is tens of thousands of businesses operated from family homes all over Ireland and most dont have a brass plate. I have never seen that being enforced either.

    OP you can call a company formation agent and ask if they offer a mail box service. Where post is literally posted to a mailbox and you can collect it if you want.


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    #10
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    Shiraz 4.99 wrote: »
    My wife operates her business from our privately owned home.
    She can also write off a percentage of the household bills against company profits.
    This is all on the advice of her accountant & we've never heard anything different from Revenue.


    Now that you mention it, I remember been told I can claim rent if I have the registered to my home?


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    #11
    Gloomtastic!
    Registered Users Posts: 8,485 ✭✭✭Gloomtastic!


    soulphish wrote: »
    Now that you mention it, I remember been told I can claim rent if I have the registered to my home?

    You can't claim rent for an office in your home in Ireland. You'd end up paying tax on any income.....


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    #12
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    Gloomtastic! wrote: »
    You can't claim rent for an office in your home in Ireland. You'd end up paying tax on any income.....

    What do you mean? I was told this by the entrepreneur assistance organisation in Limerick City? They said rent, gas, electricity, etc. can all be claimed against?


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    #13
    Gloomtastic!
    Registered Users Posts: 8,485 ✭✭✭Gloomtastic!


    soulphish wrote: »
    What do you mean? I was told this by the entrepreneur assistance organisation in Limerick City? They said rent, gas, electricity, etc. can all be claimed against?

    From paylesstax.ie
    If the house is owned in joint names and you carry on business in your sole name then the answer is yes, but it must be a reasonable rent having regard to your circumstances. Remember that the rent received is subject to tax under rental income rules. Generally speaking a rent is not charged for use of one’s house.


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    #14
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    There is a big difference between paying office rent for space in a house that you own, to sharing the rent paid to a third party on a rented property from a tax perspective.


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    #15
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    I don't understand, sorry. That seems to imply if I owned my own home. I don't. I am renting.


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    #16
    Gloomtastic!
    Registered Users Posts: 8,485 ✭✭✭Gloomtastic!


    soulphish wrote: »
    I don't understand, sorry. That seems to imply if I owned my own home. I don't. I am renting.

    Apologies. According to http://www.paylesstax.ie/self-employed-top-50-questions/ Q27, yes you can claim a percentage of your rent.


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    #17
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    soulphish wrote: »
    I don't understand, sorry. That seems to imply if I owned my own home. I don't. I am renting.

    my point exactly!


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    #18
    soulphish
    Registered Users Posts: 67 ✭✭soulphish


    Peterdalkey wrote: »
    my point exactly!

    Huh?


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    #19
    onedmc
    Registered Users Posts: 455 ✭✭onedmc


    Very little to do with company law is enforced in Ireland, recent anglo revelations clearly show you can flout the most serious aspects of Irish company law and get away with it.

    Buts I don't think your landlord should assist with breaking the law.

    Attaced is a doc regarding the display of company details.

    http://www.dilloneustace.ie/download/1/Companies'%20Disclosure%20Requirements.pdf


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