Self-Employed Owner Employs Wife?

[Manic Miner]

Dear all,

I am considering renting some space inside a pre-existing hair and beauty salon.

My wife would be working for me, essentially, doing various therapy and treatments whilst I would be the business owner/promoter/marketer etc.

Is this a possible business model that would be straightforward enough to set up or are they any legal considerations that would make it complicated?

Many thanks,
MM

 

[cremeegg]

There is nothing to stop you doing this as a sole trader and employing your wife. You would need to register with Revenue for tax purposes and with the Companies Registration Office to register any business name you might want to use.

However there a number of other things to consider, the above structure would mean your wife would not be liable for any debts the business might incur, she would just be an employee.

From a tax perspective if you were in business with your wife, rather than having her as an employee, things would be very different. If you wanted to plan the structure to minimise the tax payable a lot more thought would be needed.

 

[Manic Miner]

Thankyou very much for the advice.

To clarify, the main point with the business is so that I can show I am employed, as I am an EU citizen married to a non-EU national, and this is a legal requirement I must meet. I have other options, however, this is an ideal pathway to provide a stable income to meet that requirement.

I would be operating the business as a sole-trader, director/employee of the company etc (I'm really not sure how to set this up yet). I would be involved in marketing, promotions and generally managing the accounts whilst my wife would be providing beauty-related services to clients in rented office space.

Whichever is the simplest, easiest model to use to set up the business with me being able to show I am employed is all I need.

The business space would be rented within an existing beauty salon.

Thanks in advance for your opinions and help.
MM

 

[cremeegg]

If you set up as a sole trader, then you are self employed, not employed. This distinction may not matter as far as the "legal requirements" you mention go.

You talk about "a sole-trader, director/employee of the company", it is not clear if you understand these are completely different things.

None of your ideas show that you are employed.

 

[Manic Miner]

Yes, unfortunately, I am a complete beginner in terms of operating any kind of business structure; however, I am a quick study. Self-employed or employed would be both equally acceptable.

Yes, I have an idea of the distinctions - I was not sure which of the two (sole trader or Director or other role) would be the right way to look at it. Could I be a director/ownerwho derives an income from the company?

If what you are meaning is that I would not be an 'employee' as such, then would my suggestions of my role at least qualify as being a business owner deriving an income? If not, would it be possible to do this based on the ideas I've suggested?

The business itself could also involve selling some products.
Many thanks,
MM

 

[T McGibney]

You need proper and specific professional advice on your options here. There are far too many potential implications to even list here, let alone address in any meaningful way.

 

[Manic Miner]

You need proper and specific professional advice on your options here. There are far too many potential implications to even list here, let alone address in any meaningful way.

Would an accountant be a good source of advice on these ideas or would one of the business enterprise advice organisations be equally as good?
Thanks,
MM

 

[Firefly]

I am considering renting some space inside a pre-existing hair and beauty salon.

Pay close attention to insurance. Who is covered for what. A hair salon has hot equipment and sharp objects. What happens if one of your customers has an injury? What happens if one of the salon's customers has an injury in your part of the space? Not saying it can't be done, but I would get legal advice here. Whoever is renting out the space to you should do the same.

 

[T McGibney]

Would an accountant be a good source of advice on these ideas or would one of the business enterprise advice organisations be equally as good?
Thanks,
MM

I'd suggest an accountant. (disclosure: I am one). Good idea to talk too to your Local Enterprise Office.

 

[Firefly]

I'd suggest an accountant.

Defo. We set up a business a number of years ago. The people I consulted in order were (1) our solicitor, (2) our accountant, (3) our insurance broker and when all was done, it was back to our solicitor again to cross the T's and dot the I's.