Creating a computer business...

kjt

Hey all,
So I'm just wondering should I set up a proper business for this or is there other ways around it. This will be a full-time summer job and a part-time(15/30hrs wk) during college.
The things I wil be providing:
- Web design (logo's & websites)
- Computer repair
- Computer upgrade/repair (software: more along the lines of virus/spyware.)
- Computer Installation / Adsl installation... most installs
- Some computer training

I would be working mostly from home, but would do some calls to people's houses and repair on site. I would collect and return pc's.

I dont know much so far, but what I do know is that I need to register a company (around €2/500) Hire somebody to do my books for the year (€3/400). Do I need insurance?

If anybody is in the same boat or has been, Any and all advise is very welcome.

Thanks

antoinolachtnai

Are you doing this work for retail or business customers? That will determine whether it is advantageous to register for VAT.

On the face of it, if it's a small business and most of the work is retail, you are short on capital and there are no partners, then I would just register a business name, not bother registering for VAT and get on with it. In a year or so when there's some cash coming in, get a limited company and think again about the whole VAT issue.

Go and find out about how the basics of bookkeeping work and do all the keying of transactions yourself into a cash book. Get an accountant who will do your tax filings at the end of the year (although it is by no means impossible to do them yourself).

Antoin.

kjt

Thanks for your reply.

It would mostly be retail. If I got alot of demand for websites I'd be working with a friend on that so I'd have a partner. I'd be looking at €2k to €7/8k absolute max a year income.

So your saying its ok to register a small business and not have to play around with any tax?

Thanks for everybody's help.

antoinolachtnai

I definitely didn't say you won't need to play around with tax! You do have to pay tax if you earn more than a certain amount. You are probably below the threshold at this level of trading.

I said you may not need to bother with VAT. At this volume of trading, you definitely don't need to register for VAT.

Be careful with partnerships. There are technical legal problems with partnerships. Why don't you just contract in your friend whenever you need help?

Even though you are small-scale, try to be as professional as possible from day one.

Antoin

kjt

Sorry I meant to say vat instead of tax**.

Yea I might consider that, contracting in my friend.
Yes, I'd like to keep as professional as I can, thanks for that.
So do you know yourself or even have a site with the amount of income you have to be earning to start dealing with vat and so on?


Thanks again

a_ominous

kjt, have a look at www.basis.ie for some info on starting a business. Should also get the Revenue infomation there, plus a lot of other stuff.

kjt

Thanks for everybody's help

Will check that out.

MartMax

kjt.. look around here too for some old threads, regarding VATs and sole-trader/business start-up most asked questions...

btw, u must know that if you have a limited company and the biz is on and off... the Companies Office don't see it that way... accounts and annual returns are expected to be filed every year...