Setting up own business???

jayo2004

I am thinking about setting up my own business but did not realise there was so much to it. I have a few questions and if someone could help it would be great.

1. I will be working from home using a COMPANYNAME. I will be working alone and was wondering which category to register the COMPANYNAME under (sole trader,company,firm etc..). Also which form do i need to fill out.

2. Do you pay tax lets say if you were sick for a month or work was slow, basically if you were'nt making money do you still pay tax. I was told you do but i know nothing about this sort of stuff.

3. If i am working from home can i claim tax back on electricity, heating, phone bill, etc...

4. Is it best have someone do the books or do them myself. Is it expensive to have someone do them for you. :

5. I was with the local enterprise board to find out the above questions and they said there is a course to cover all questions asked above. I just want to get up and running as i know i can get the work. If i hold off and do the course it will be a month or so before i even get started. I want to be well up and runnning before Christmas. Is the course necessary.

6. If there is anything else I need to know or if anybody has any tips please share.

AndyWarhol

jayo2004 wrote:

I am thinking about setting up my own business but did not realise there was so much to it. I have a few questions and if someone could help it would be great.

1. I will be working from home using a COMPANYNAME. I will be working alone and was wondering which category to register the COMPANYNAME under (sole trader,company,firm etc..). Also which form do i need to fill out.

2. Do you pay tax lets say if you were sick for a month or work was slow, basically if you were'nt making money do you still pay tax. I was told you do but i know nothing about this sort of stuff.

3. If i am working from home can i claim tax back on electricity, heating, phone bill, etc...

4. Is it best have someone do the books or do them myself. Is it expensive to have someone do them for you. :

5. I was with the local enterprise board to find out the above questions and they said there is a course to cover all questions asked above. I just want to get up and running as i know i can get the work. If i hold off and do the course it will be a month or so before i even get started. I want to be well up and runnning before Christmas. Is the course necessary.

6. If there is anything else I need to know or if anybody has any tips please share.

I'll give you my perspective on the above questions. I don't purport to be any financial expert now so use at your own peril!

Firstly: www.cro.ie should be your first port of call. Also for the full version, spend some time going through the Companies Act, 1963.

1. You can work from home for sure, but you'll need to put a sign outside your house (e.g. a small brass plate: I'm not sure how strict they are about this though). You've a decision to make as to which company you'll operate as (sole trader, private, public, etc.), perhaps if you don't know yourself and need to ask such questions on an online discussion forum then you should seek advice or find out for yourself from the above two hyperlinks.

2. Well if you're not making any profits, you won't have to pay any tax perse: However, if you're buying goods and services for use in the company you'll of course have to pay VAT like everybody else. If you're sick, you can pay yourself sick leave, but if it's your company you're effectively paying yourself, so what's the point eh? No guardian angel will look out for you if you get sick, although your personal health insurance policy might. If you are self employed, your health insurance premium is often much, much higher than a normal PAYE worker.

3. I guess you could claim back your ESB/Gas bills if you're working from home, but you'd have to change the billing name from your name to your company's name. I don't know if it is legal for your company to pay for your personal living expenses. Anyway, most people who have their own business would decouple as much as possible their own personal expenses (like bills) from their company expenses and have seperate premises as it's much easier on the paperwork particularly when annual returns time of year comes about. Of course many companies buy larger items company cars for use by their directors (benifits in kind), but not things like electricity bills; it's hardly worth the hassle...

4. If you can do your own books, do them; it's not that hard if you've a small company. If you've a larger company, you have to have an accredited auditor do your accounts. These guys are generally expensive. If you've a small company, all you have to do is keep an excel list of in's and out's and you'll be grand (sounds simple and it is, but has to be done 100% correctly hail rain or shine and a lot of people have lazy days...)

5. I'd do the course given the kind of questions you're asking (I'm not trying to patronise you in any way). If you don't have time, I'd spend an entire weekend studying the two links above and maybe ask some of your friends who have their own businesses any questions. Try to keep away from solicitors/company forming offices if you can as they will charge you a fortune. Sometimes they are great and offer good advice if you have lots of money and they are reputable. If anything, the CRO have made it as easy as possible for any citizen with a bit of cop-on to be able to set up their own company and file accounts easily via their excellent online system.

6. I'd should also tell you that as a Director, you have big responsibilities and must realise exactly what needs to be done and what you can and can't do. You can get caught out easily and find yourself paying hefty fines should you act inappropriately. You can also go bankrupt quickly if you don't keep on top of things and act responsibly. Know what you're getting into beforehand.

kluivert

The Companies Act is pretty long and ranges from 1963 - 2005 so if you want to similiarise yourself with business and company law get the book that they use in college.

Tax Registeration Forms:TR1 for Sole Trader, TR2 if registering a Company.

I think you should take the course or a similiar course as it will come back and bite you at a later stage.

A really good business person will know all ends of their business so pick your weak areas and get studing, theres no short cuts or alternatively pay loads of money to a financial advisor to help you.

Do the study its cheaper and ull understand your business better. Meaning its a good idea to ask question like above but the course will ask all your questions for you so your not travelling in the dark.

Why not set yourself the target of setting up business on 1st January 2006. Co insides with the tax year as well.

AARRRGH

jayo2004: can I ask you - do you already have the business up an running? (everything except the legal bits.)

I was involved in a business startup and this is my 2 cents -

Do not get caught up in the tax/legal bull****. You can spend way too long getting your head wrecked in all the little details. Focus on your business and your idea. The tax/legal area is secondary and you'll get the hang of it after a while.

At this stage registering a company is probably not worth the hassle either, unless you are working in a seriously risky business (i.e. if you know you will be sued at some stage.) Being a sole trader is simple and requires minimal accounts.

You can only claim VAT if you are registered for VAT.

You can use your office expenses (ESB, heat, etc.) to reduce your profits ... and you tax.

The "start your own business course" you are referring to. I did that. It's very basic - it's for serious beginners. Worth going along to though. The marketing section is very motivating.