When you decide to establish a company, it is important that you take into consideration the legal and tax implications that apply to each structure.
The big question is what type of company will allow you to make the best decisions for your business?
There are many legal structures you could consider, including:
Sole trader: A sole trader can have employees to assist with the running of the business, but they own the business solely. It is easy to set up an enterprise as a sole trader, in terms of the number of administrative hurdles to overcome. As the sole trader, you will be credited for all of the rewards, but also responsible for all of the risks.
Partnership: A business partnership is a formal arrangement by two or more individuals to manage, operate and share an enterprise’s profits. There are several types of partnership arrangements, such as a silent partner, in which one party is not involved in the day-to-day operations of the business.
Limited company: A limited company (ltd) is also known as a private company limited by shares. It’s one of the most common types of business structure in Ireland. This structure benefits from limited liability. That means that company directors or shareholders can only be liable for the amount they have invested in the business.
Your Local Enterpise Office can help you decide the right structure from the beginning; taking you through the various types of legal structures and their potential implications on your business.
Visit www.localenterprise.ie to sign up for the Start Your Own Business Programme.