Some Advantages of setting up a Limited Company are as follows:
The company name is protected – Setting up a limited company prevents another limited company from using your company name
Setting up a limited liability company offers just that - limited liability - As long as the business is operated legally and within the terms of the Companies Acts, directors or shareholders personal assets are not at risk in the event of a winding up or receivership.
For sole traders and in partnerships, the individuals personal assets are at risk if there is a claim against the organisation.
The company has flexible borrowing powers.
The interests and obligations of management are defined.
Ireland's Corporate Tax Rate of 12.5% is one of the lowest in the world
A limited company has a greater ability to raise finance by the issue of shares and also under the Business Expansion Scheme.
Shareholders looking for outside investors to invest may be able to take advantage of the tax incentive Relief for Investment in Corporate Trades, otherwise known as the Business Expansion Scheme (BES). The Scheme provides individual investors with tax relief in respect of investment in certain manufacturing, service, tourism, research, constructing and certain music recording activities. This can substantially reduce the cost to an investor or his investment. It also enhances the ability of eligible companies to attract outside investment. (Source: Revenue Commissioners)
New shareholders and investors can be easily assimilated and the rights of shareholders are normally clearly defined and protected.
Taxation:
Sole Traders pay income tax. Sole traders income is taxed as the proprietors' income, regardless of how much profit is retained as working capital, and interest on loans to the business is taxed as their income. Directors of Limited Companies pay income tax and the company itself pays corporation tax on company profits, and company profits earned are retained in the company.
Shareholders in a limited liability company are only liable to lose the share capital they subscribe.
There may be a greater degree of business credibility of trading through a limited company.
A company is a legal form of business organisation. It is a separate legal entity and, therefore, is separate and distinct from those who run it. The company (and not the individual shareholders) is the appropriate person to be sued in the event that debts are incurred by the company which remain unpaid, despite demand.
Scope for greater company pension scheme to be secured through a limited company.
....just a few thoughts.