Bit of an unusual start-up situation that I would really appreciate some help with:
Myself and my boyfriend have both gone freelance making websites in recent months (him first, then me). We are both sole traders and are registered for income tax, but not VAT (below threshold). I am concerned about whether we should (or legally have to be) a company instead, given the nature of our activities:
While we work on most small sites independently, we work together on bigger projects. Once we were both 'freelance', it made much more sense to act as a duo i.e. deal with clients together, take in work together and then whoever is free or most suited to the job takes cares of it and invoices. For example, if I did the site, I would invoice under my own name and tax number. If it was a larger site, and my boyfriend was due some of the money, he would invoice me and I would pay him.
To make dealings with clients simpler, we registered a .ie domain name (and registered a business name in my name to back this up) so that instead of people always having to refer to us as 'john and mary' etc, we have a 'brand' or umbrella name. We have been careful not to issue invoices under this name etc. I know we cannot trade under this name (but technically I believe I could). We have no business cards or anything yet, but would like to have them and include our 'brand' in some way if possible. Quotes have been trickier - they have included the website address sometimes, but always have both our names listed as the suppliers.
So, I realise that to the outside world we may be acting / looking like a company (or partnership), but we are not. Are we breaking any laws? Is there any way we can have an umbrella name but remain sole traders?
I hope that we can remain sole traders for the following reasons but please let me know if they don't make sense!
However, if we are breaking regulations by trying to have an easy 'umbrella name' we have to find a workaround ASAP.
I am hoping that the wise owls here at AAM may be able to offer some advice on this, but I know it could be very beneficial to pay an expert for a session (would an accountant cover all this, or does some of it need a legal eagle?). If someone could recommend someone good in Dublin (preferably city centre) who would deal with such small cases, I would really appreciate it. I'm just afraid of sticking a pin in the phone book and paying someone who would either not offer solid advice or make a laugh of our tiny businesses!
Apologies for the very long post, but our situation is probably quite odd so I was trying to provide enough info for people to help. Thanks in advance.
Myself and my boyfriend have both gone freelance making websites in recent months (him first, then me). We are both sole traders and are registered for income tax, but not VAT (below threshold). I am concerned about whether we should (or legally have to be) a company instead, given the nature of our activities:
While we work on most small sites independently, we work together on bigger projects. Once we were both 'freelance', it made much more sense to act as a duo i.e. deal with clients together, take in work together and then whoever is free or most suited to the job takes cares of it and invoices. For example, if I did the site, I would invoice under my own name and tax number. If it was a larger site, and my boyfriend was due some of the money, he would invoice me and I would pay him.
To make dealings with clients simpler, we registered a .ie domain name (and registered a business name in my name to back this up) so that instead of people always having to refer to us as 'john and mary' etc, we have a 'brand' or umbrella name. We have been careful not to issue invoices under this name etc. I know we cannot trade under this name (but technically I believe I could). We have no business cards or anything yet, but would like to have them and include our 'brand' in some way if possible. Quotes have been trickier - they have included the website address sometimes, but always have both our names listed as the suppliers.
So, I realise that to the outside world we may be acting / looking like a company (or partnership), but we are not. Are we breaking any laws? Is there any way we can have an umbrella name but remain sole traders?
I hope that we can remain sole traders for the following reasons but please let me know if they don't make sense!
- This is a tiny micro business. We are both fully self employed now since the start of 2007. We have lots of work but our turnover is tiny so far. I read a good rule of thumb here once that said you should only set up a company if you make more than you need to live on?
- Given our current small income, our freelance status is far from set in stone. Even in a year's time, only one of us may still be freelance or we may have PAYE income etc.
- While we discuss work a lot, and work together on quotes and bigger sites etc, some of our projects are completely solo efforts. We each like doing our own thing, and a partnership 50/50 formal split etc would not really be suitable.
However, if we are breaking regulations by trying to have an easy 'umbrella name' we have to find a workaround ASAP.
I am hoping that the wise owls here at AAM may be able to offer some advice on this, but I know it could be very beneficial to pay an expert for a session (would an accountant cover all this, or does some of it need a legal eagle?). If someone could recommend someone good in Dublin (preferably city centre) who would deal with such small cases, I would really appreciate it. I'm just afraid of sticking a pin in the phone book and paying someone who would either not offer solid advice or make a laugh of our tiny businesses!
Apologies for the very long post, but our situation is probably quite odd so I was trying to provide enough info for people to help. Thanks in advance.