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Supplementary Reading
Before making that big decision of venturing into the world of profit-making, there are certain legal matters that every entrepreneur should know, particularly when it comes to the different structures in setting up an enterprise and the tax implications that go with them. Indeed, for a businessman to succeed in his chosen endeavour, he needs to understand how things work.
Legal Set-Up There are three structures to choose from when starting a business, namely, a limited company, a partnership, and a sole proprietorship. Of course, in making your choice, it is important to consider the type of venture that you would be running and the partners that you would be collaborating with. Needless to say, if you are a wise entrepreneur, you should opt for a structure that minimises the risks of incurring liabilities. For instance, while a sole trader can be held personally liable for the debts of the enterprise, the same only happens in a partnership if the latter, as a separate legal entity, cannot pay for its obligations. However, in a limited company, there is a certain threshold in which the owners' personal assets may be made legally responsible. Nonetheless, in all these cases, there is a need to register the business name that you will be using with the Companies Registration Office. Likewise, you have to submit an annual report and account to it.
Tax Implications A going concern is taxed depending on how it is created. Whereas companies are liable for corporation tax, they get relief for the first three years of its existence. Sole traders, on the other hand, pay through the self-assessment system. Subcontractors in meat processing, forestry, and construction may secure a C2 certificate for them to receive payments without any deduction. For employers who need to recruit staff, they must register for PRSI and PAYE with the revenue commissioners. If they can create more jobs for the year, they may also qualify for a tax exemption. However, “a claim for exemption from United Kingdom tax on business profits, including income as a subcontractor, should only be admitted where the taxpayer has provided a statement from the Irish Tax Authorities to the effect that he was a resident of Ireland for Irish tax purposes during the period for which a claim has been made” (http://www.hmrc.gov.uk/manuals/dtmanual/dt9881.htm). For more information, read Taxation in the Republic of Ireland.
So if you want to get a solicitor to help you out in starting a plan, check out the services offered on this website.