Moving from Sole Trader to Limited Company
Moving from Sole Trader to limited company takes some planning. We are contacted by many Sole Traders and Partnerships who are considering the move to limited company, and want to ensure it is done in the right way. Your main consideration for moving to a limited liability company is to protect the Directors/shareholders with Limited Liability which is not afforded to Sole Traders or Partnerships in Ireland. Here is a list of considerations for getting this done.
Updated 08/02/2022
- Know your responsibilities as a Company Director or Company Secretary. We deliver printed guidelines and give access to our online PDF downloads when you incorporate. There is nore compliance with a limited company but the benefits outweigh the compliance burden.
- Be aware of the tax benefits. Consult a qualified tax advisor prior to making the jump.
- Understand Limited Liability and how it affects you and your business.
- The company is a separate legal entity from the people involved in the business, i.e. the Directors and the Shareholders. Be aware of how this protects you.
- There are advantages for company directors regarding tax benefits around pensions for example.
- A limited company name is a protected name and cannot be re-registered with the Companies Registration Office. A limited company name has protection, and you will be able to register the same name under your limited company.
- Having the word “Limited” after a company name can make the business seem more credible in the eyes of a potential client or investor.
- Review the checklist of required items before you incorporate.
- A limited company has greater ability to raise finance by the issue of shares. A Sole trader or partnership has difficulty doing this.
Many Partnerships and Sole Traders set up in this format as Limited Liability does not suite them, but circumstances in business change, and you may now require a limited company business structure. Moving from Sole Trader & Partnership status to Limited Company takes us between three and five days to process once we have all the required information. The cost of preparing your company formation can be done for as little as €219+VAT depending on your needs. For more advise on the company formation process please make contact with us and we can take you through it.