Pros and cons of becoming a company

Donnaduckegg

New Member
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1
Our accountant has advised us to become a company rather than being 2 sole traders. What are the pros and cons of changing your business to a company? Thanks for the advice!
 

cremeegg

Frequent Poster
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The cons are straightforward, the regulatory burden and associated costs are higher.

If you intend to stay in business together for the long term, it is certainly something you should consider.
 

SBarrett

Frequent Poster
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3,093
Not all your profit is taxed as income every year
You can just take a salary like a PAYE worker
More scope for pension contributions which aren't subject to USC & PRSI like they are under the personal pensions

Not sure how you manage your accounts with your partner at present, but under a company, you have your company account that pays for the bills and you take your salary. No dividing costs and ensuring everything is split evenly.

I don't find the regulatory requirement burdensome. I pay my accountant to do that and he submits everything to the CSO. The information I give him is no more than if I was self employed.
 
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