registering a business?

[el-jimbo]

Hi all,

Firstly let me apologize in advance if this gets confusing!

I am a web designer currently working for a small company. I have an idea for a website i would like to run myself. I would eventually hope to make money out of it and run it as my primary business. I would require a .ie website address, and since it won't be run under my own name, I would require a registered business name. My first question is, since I am currently to busy to work on the site, but I would still like to register it to secure the name, would this cause any tax complitcations for me if I did register the business? At the start, for up to a year and maybe more there would be no income into the business from the site.

A second question, relating to this, I also fix computers in my spare time. Its only a small thing and I only do 1 or 2 a month and its mainly for friends for a minimal fee. Some of these people are self employed and use their computers for work, so if i could bill them for VAT they could claim this back, so if I did set up my business name, would I be able to bill them through the business so they could claim back the vat? Would i require any extra steps apart from registering the business to do this, and if so would it be complicated to do?

I'd really appreciate any feedback and advise anyone can give me,

Thanks

 

[Graham_07]

You can register a business name at the CRO ( www.cro.ie ) as a sole trader. Form RBN1. That gives you the name. You do not have to commence trading straight away. Remember though registration of a business name is mainly intended where you are going to trade under a name not your own. It does not protect that name from duplication by someone else.

On the VAT issue, it sometimes may make sense to register for VAT even if under the limit for registration. However the threshold is currently €37,500 annual sales from a service to have to register. You would therefore be registering while not obliged to do so. If all your customers are VAT registered then this might make sense as you then can reclaim any VAT on your costs. However if customers are non-VAT registered you hav to charge them VAT and this may make your charge un-competitive if you are registered when not obliged to do so. You need to look at the practicalities of this. If you choose to register then the relevant Revenue form is TR1, from www.revenue.ie That form also registers you for Income Tax (non-PAYE) so that you can file your income from the self-employment. Remember once registered you must file a tax return annually and ay any taxes due on your profits form the business.

 

[John Rambo]

You should also check your employment contract...it may contain a clause which gives your employer proprietary rights over IP in a related area created by you during the period of your employment.

 

[mathepac]

... I am currently to busy to work on the site ... Some of these people are self employed and use their computers for work, so if i could bill them for VAT they could claim this back, so if I did set up my business name, would I be able to bill them through the business so they could claim back the vat? ...

If you are too busy to work on the proposed new site, then I would suggest the last thing you should do is register for VAT and add an administrative burden for no benefit to you (or to your couple of repair business customers).

If you are not VAT registered, you produce an invoice for €X which your customers pay and they off-set this as an expense against their tax-bill, whether sole-trader or limited company, so they recover the expense whether you are VAT-registered or not. You return their payments to you on your Form 12 at year-end.

The only difference VAT-registration makes you produce an invoice for (€X * 1. 215) which your customers pay to you and you now also have to track and reconcile your VAT ins and outs and make regular returns and VAT payments (assuming you collect in sales more than you pay out) - in essence you become an unpaid tax-collector and it puts not an extra bob in your pocket.

My tuppenece-worth.