Thinking of going Limited?

Q. What are the main advantages of making the move from a sole trade/partnership to a limited
company?

A: The main advantages of trading through a limited company are the following:
-The 12.5% Corporation Tax Rate in Ireland is very appealing when compared to the income tax
rates applicable to Sole Traders;
-Greater access to tax efficient pension schemes;
-Attractive tax incentives are available– SURE Scheme, Corporation Tax Relief for first three years of trading for certain businesses;
-Greater access to funding;
-Limited Liability – The Company is a separate legal entity and the shareholders cannot generally be pursued for Company debts. This is not the case for Sole Traders who are personally liable for any debts built up.

Additional Considerations:
Additional factors which should also be considered are that Financial Statements are required to be prepared and publicly filed in the Companies Registration Office. The Directors of the Company have legal responsibilities to which they must adhere and additional taxation may arise in certain cases.