Tax - Sole Trader v Ltd

SMBIRE

Registered User
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If someone is operating as a sole trader, for example a web designer, and they have no employees.

They pay IT, PRSI, USC on their net profit.

If this person were to incorporate as a limited liability company they would then be liable to corporation tax.

Am I correct in thinking that the salary they pay themselves is not tax deductible so this person would effectively end up with less net income after paying themselves if they operate as a limited company and pay themselves a salary equal to 100% of the profit before tax of the limited company?
 
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