How do I set myself up as a Sole Trader?
It is really easy to start a Sole Trade (compared to starting a Partnership or Limited Company). It is also easy to shut it down.
Here are some things you must do when you start though:
- Register for taxes with Revenue on ros.ie – you need to file your own taxes every year as a Sole Trader
- Register your business name if you are not trading under your own legal name – this can be done on http://core.cro.ie by filing Form RBN1
- Set up a business bank account – it’s best to keep the cash of the business separate from your personal cash and spending. You will need a Certificate of Business Name to open a business bank account
One very important thing to remember is to register for VAT if required. The VAT registration limits are as follows:
- Services – €37,500 in sales within a 12-month rolling period
- Goods – €75,000 in sales within a 12-month rolling period
You then need to file VAT returns (normally every 2 months) and pay any VAT owed over to Revenue – so it’s best to keep an eye on cash flow and ensure you have this cash to pay.
You will also need to register for employer taxes if you plan on employing staff.