Sole Trader or Limited Company ?

Hi,

I am starting out as an IT Contractor and have no idea what I should be doing , sole trader or company ? I will not be charging the company VAT. Can anyone help out here ?

I am also looking for a recommendation on an accountant preferably in North or West Dublin.

Any advice would be appreciated.

Thanks

Hi TyroneGirl,

As far as i know you don't need to register for VAT if you start-up a company, a friend of mine set up as a contractor recently too. However more research may be required on both options - some good site are: www.cro.ie or [broken link removed] or [broken link removed].

Good luck

sorry....full addresses are www.cro.ie or or [broken link removed]

Wise Willie said:

Hi TyroneGirl,

As far as i know you don't need to register for VAT if you start-up a company,

Click to expand...

Not necessarily true. If you are providing a service and the turnover is expected to be over 35k, then you are obliged to register for VAT.

And that's the same whether you're a limited company or a sole trader.

Hi Tyronegirl,

I have been contracting for a number of years & you should operate as a sole trader for as long as you can & avoid setting up a Ltd. company. The administration & cost / time to operate a Ltd. is too much hassle for a one person type operation like yourself. However having said that in my industry it is getting harder to find contracts as a sole trader & more & more companies / agencies will only deal with a Ltd. company, so as I said, if I were you I would stay as a sole trader for as long as I can, & if for what ever reason you need to change your status to a Ltd company this can be done in a couple of days. You should also register for vat from day one & charge vat on any service you provide.
Good Luck !

Hi there, I am an IT contractor as well. I would advise first of all working under an umbrella company until such time as you find your feet as a contractor. I was in the same position and when I felt comfortable I could remain in the business then I formed a ltd company.

In Ireland right the majority of companies will only deal with ltd companies in the contracting world. You can't avoid charging vat since you are a service provider.

Best of luck

Hi there,

Prima management based in Dublin are a very good management company..(www.prima.ie), theres also a place in Cork called CXC(Consultants Exchange) that have offices in Dublin. Both specialise in IT contractors....

They charge in or around €130 a month....but this can be claimed back as an expense...