sole trader

paddyc

how easy is it to set up as a sole trader... to run a small business

thanks paddy

democrates

It's not rocket science, but it's easy to fail too so brainpower is well advised.
For starters a search of the fora will yield you some useful info on startups.

You can start trading straight away using your own surname as part of the business name, eg Murphy Plumbing, or if you want to call the business Quadrangle Enterprises or something you will have to register that using form RBN1 at the CRO (Companies Registration Office) in Parnell Sq. You can file online for €30 or from September 2005 for €20.

To keep the accounts from getting confused with your personal finances you should set up a current account for the business and put everything through that. That gives you a paper trail and makes book-keeping and filing easier for your accountant. Unless you're looking for an overdraft facility the bank won't need a business plan, but any startup should go through the discipline of creating one. You can also bank online which is handy, but keep a close eye on those bank charges.

If you can outsource the book-keeping or other areas of the business that can be well worth the money if it leaves you to focus on the rest of the business and spend more of your time doing the things you enjoy.

You don't have to register for VAT (form TR1) with the revenue commissioners if your turnover will not exceed €51,000 for the supply of goods or €25,500 for the supply of services.

You can however elect to register for VAT regardless of your turnover, and this may be worthwhile from the cashflow perspective (kills over 90% of startups) if in your first year you need to spend a lot on equipment for the business, because you can then claim that vat back. On the downside you'll most likely have to file a VAT3 every two months (some exceptions can file annually) and the annual RTD EUR (Return of Trading Details). Then again that can keep you on top of the book-keeping instead of leaving a mountain until income-tax return time.

Electing to register for vat might be a bad idea in the long term if your turnover would have been under the threshold, but if you're in services I doubt staying below €25,500 is the plan. Anyone else got views on this (I'm not a tax advisor here)?

You could do worse than have a look at the VAT Guide and IT49 guide to VAT for small businesses. The Leaflets and Guides section of the revcomm site is indespensible, there is also a forms section with downloads and you can file online with ROS-the Revenue online Service.

Another thing to be aware of is Third Party Returns, check out IT16.

I've looked at some CRO and Revcomm aspects here, there is also health & safety, insurance, marketing, hr, and so on to consider.

See if you can get someone already in the field to act as a mentor, they may not want to help a competitor, but if you can make the case that you can send surplus work each others way or collaborate on big jobs you might just get a useful ally. If that doesn't work, the County Enterprise Boards also have a mentor scheme, well worth checking out.

Other sites of interest besides the CRO and revenue above are
BASIS the government business portal
FAS who run a start your own business course
Enterprise Ireland
County Enterprise Boards
Starting a Business in Ireland run by the oak tree press.
Most of these sites as well as the main banks have free start your own business planning guides as well as spreadsheets for cashflow projections, profit and loss accounts and so on.

Like anything in life, you get out of it what you put into it, and if you neglect any particular aspect of the business you run the risk of that coming back to bite you. Your step of asking for advice is right on the money, rather than trying to be a pro on everything from marketing to book-keeping, it's always wiser and easier to ask someone who's been there.

Hope the links help, and remember, fortune favours the brave.

0utshined

Nice summation democrates. I'm sure it'll be of help to a lot of people aside from the OP.

paddyc

thats what i needed, many thanks


paddy

democrates

PaddyC, I must add a point made by ArthurDent on a thread about setting up a limited company that you really ought to get professional advice on the business.

The good news is that as he says, many accountants will give a first consultation free. Sweet!