You can set up a business as a Sole Trader, a Partnership or as a Limited Company.
Before Starting a Business it’s advisable to seek solid advice from an experienced Solicitor. The Solicitor will advise you on what type of Business Registration is best for you. There may be Regulations specific to the type of Business you’re getting into. You can check this out yourself on the Government’s Business Regulation website.
Starting a Business: Sole Trader
Trades People and Consultants often choose this option. You just register your Business name with the CRO and register as Self Employed with the Tax Office and off you go. This option carries personal risk. If a Sole Trader goes bust and has Creditors, they can come after personal assets to get paid.
Starting a Business: Partnership
This is 2 or more Persons working together to make a profit. That scenario alone creates a Partnership in the eyes of the Law. You do not have to register a Partnership. Similar to a Sole Trader, Partners personal assets can be at risk if their Business Activities fail. Each partner is liable for the debts of the Partnership, without Limit.
Starting a Business: Limited Partnership
This is similar to the above, but is registered with the CRO as such. All Partners except one are given Limited Liability.
Starting a Business: Limited Company
Forming a Limited Company means that your Business becomes a Separate Legal Entity. It can sue in it’s own name, and continues it’s existence until it is wound up by the CRO. A members Liability to the Company is Limited to the amount of Share Capital they put in. If the Company goes into Liquidation, your personal assets cannot be accessed to pay Creditors.
There are four types of Private Limited Company:
• Private limited by share capital
• Single member private limited by capital
• Guaranteed limited company with share capital
Each of these has their own minimum and maximum requirements in terms of number of members, directors etc. A guide to the different types of Limited Company can be found here.
As always it is best to seek advice from a Professional when Starting a Business and deciding what type of Business you will be.
A Limited Company must register with the CRO and is required to file returns with the CRO each year. The Bullet Formations Tool looks after all the documents you need to set up a Company. Bullet Accounting takes over from Formation, and automates your B1 Annual Return for the CRO.