Trading as a sole trader - do I need to change to Limited Company? Also; how do I ...

Hi

Im currently trading as a Sole Trader where I work for individual places and invoice them. So far so good. Now I want to "sub-contract" work to others where I'll be taking a small cut so do I need to register as a Limited Company or just let them invoice me and I'll invoice the client?

Also; how do I use CRO to see if a company name has been taken? The website seems to be a minefield.

And finally!

Has anyone used formit.ie to do all this for them?

Many Thanks

Re: Trading as a sole trader - do I need to change to Limited Company? Also; how do I

You do not need to trade as a company to "sub-contract" work. However sub-contracting itself can be a minefiled depending on the industry ( e.g. construction) Liability for sub-contractors bad work may be an issue also.

You can search the CRO under online services, company search for names of companies already in use.

Can't help with the last question sorry.

Re: Trading as a sole trader - do I need to change to Limited Company? Also; how do I

It's the million dollar question whether to go limited! It really depends on how big an operation you are talking about. I would seek the advice of an accountant, and then act accordingly.

Re: Trading as a sole trader - do I need to change to Limited Company? Also; how do I

I think I'll stick with been a Sole Trader till I speak to my accountant, and thanks for the CRO help.

Re: Trading as a sole trader - do I need to change to Limited Company? Also; how do I

You dont need to form a company to do this. The main reasons for a company are
limited liability
able to accumulate profits at lower tax rate. this implies profits exceed drawings.
pension planning. difficult topic now.

Re: Trading as a sole trader - do I need to change to Limited Company? Also; how do I

The benefits of a limited co. are mitigated hugely by the personal guarantees that banks and some suppliers will demand.

The limited liability will only protect you then against creditors and there are a lot of procedural filings you would have to make if you set up a ltd. co.

Re: Trading as a sole trader - do I need to change to Limited Company? Also; how do I

Very very interesting CGT relief and tax-planning opportunity here for you if you switch between sole-trader and limited company.

If you ask most accountants they will advise of the CGT relief applicable and the thousands saving to be had - - - - - BUT if you have cash in the bank and know that business/income from the company will be steady, it is VERY worthwhile to forego the CGT relief and pay the CGT.

There are a few small hoops to go through - but essentially, if you do make the switch you will need to talk to an advisor who will probably advise of the CGT relief - then ask him, that you heard there are advantages to NOT claiming the relief and ask him to have a think re same.

(You can thank me another time!)