Sole trader been asked to set up a company in order to be paid

Jollygood

Registered User
Messages
12
Hi , I'm a sole trader who did some work recently for a company in the U.S. it was small fry, just 1300euro and now they are telling me in order to get paid they want me to set up a company. Is this correct and how much hassle would it be to do this? Am also full time prsi now since Jan having previously been freelancing full time. Thanks a mill in advance for your help.
 
Tell them to get stuffed. Forming a company and subsequently closing it down would cost you professional fees amounting to a sizeable chunk of your €1,300. And a company raising an invoice for work done prior to its formation is at best a legal nonsense and at worst false accounting.
 
It cost me about €600 to set up a company, and I'm not thinking about how much it might cost to close it down again...
Why do they want you to set up a company?
 
Yes I will tell them to (politely) get stuffed I think! No idea why they want me to do this. There is the possibility of small bits of work here and there, just a few hours a month though so it doesn't sound like it would be worth my while setting up a company for this reason. I'll go back to them and say no way. Thanks for your help.