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Starting Up As Sole Trader- Bank Account Advice

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  • 23-06-2021 4:38pm
    #1
    onhihjno
    Registered Users Posts: 3 ✭


    Hi,

    I'm starting up as a Sole Trader to make some income from a online services website that I run that has started to build up a following.

    I would rather trade under a company name for a few reasons, so will have to register with CRO. I have a couple of hopefully easy questions someone might know.

    1. I intend to create a dedicated business account for neatness. Is a service such as Revolut acceptable or should I be going to a more traditional bank?
    2. When setting up a Bank Account would I then use the business name or my personal details? (ie. does having a business name matter for setting up the account)
    3. Will I have to register with revenue and determine preliminary tax in 2021 or is that something that really kicks off in 2022

    Thank you :)


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    #2
    Gloomtastic!
    Registered Users Posts: 8,479 ✭✭✭Gloomtastic!


    After you have registered your trading name with the CRO you will be able to set up a bank account with 'Your Name' trading as 'Your Business Name'. This means payments can be made to either you or your business and the bank will accept them.

    With Revolut Business and the alternative, N26 Business you will get an IBAN and BIC that means you can accept money from any other bank account. Don't write off traditional banks just yet. Revolut Business Account charges were more than BoI (my current bank) last time I looked. N26 was cheaper but not enough so to warrant changing.

    Preliminary Tax. Details are here but looks like you don't have to pay anything up front.

    https://www.revenue.ie/en/self-assessment-and-self-employment/guide-to-self-assessment/what-is-preliminary-tax.aspx#:~:text=A%20payment%20of%20preliminary%20tax,preliminary%20tax%20with%20this%20choice.

    When I first started as a sole trader in Ireland, my bank manager (remember them!), set up two accounts, a trading account and a tax/VAT account. Might be an idea to do both too.

    Good luck to you!


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    #3
    onhihjno
    Registered Users Posts: 3 ✭onhihjno


    Gloomtastic! wrote: »
    After you have registered your trading name with the CRO you will be able to set up a bank account with 'Your Name' trading as 'Your Business Name'. This means payments can be made to either you or your business and the bank will accept them.

    With Revolut Business and the alternative, N26 Business you will get an IBAN and BIC that means you can accept money from any other bank account. Don't write off traditional banks just yet. Revolut Business Account charges were more than BoI (my current bank) last time I looked. N26 was cheaper but not enough so to warrant changing.

    Preliminary Tax. Details are here but looks like you don't have to pay anything up front.

    .

    When I first started as a sole trader in Ireland, my bank manager (remember them!), set up two accounts, a trading account and a tax/VAT account. Might be an idea to do both too.

    Good luck to you!

    Brilliant, thank you very much for the advice- especially the VAT piece, not an issue for now but may be something to deal with down the line.


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