Invoicing a company if I am a director

D

Dublin_Resident

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Hi All,

I'm currently a self employed sole trader.

A startup company in the same space approached me recently. They are interested in partnering with me as I have some skills that would be very useful to them. It's very early days with this but the option of shares (for me) and the possibility of becoming a director in this company has already been suggested.

The founder does not take a salary as yet and even if I take shares and become a director I would not receive one in the beginning either. There is the potential for us to work together on some ad-hoc project work that I could then invoice for.

I have built up a decent following with my current business and would like to keep this going. My question is around the invoicing.

Would it be possible for me to invoice from my current sole trader business (Company A) to the startup business (Company B) if I were to become a director of that business?

Thanks in advance for your help
 
Are you trading as a sole trader business or through a company (a sole trader is when you trade an individual and a company is when you invoice your services through your company)? Your question states "current sole trader business (Company A)" which is contradictory. To answer your question if you invoice through company A to company I don't see this as an issue even when you are a director of the latter. Ensure the contact and invoice states that the services are being provided by company B. However if you are trading personally and invoicing a company of which you are a director this can be problematic esp. where you have share options. I've seen the Revenue challenge less and the Company B can end up with a PAYE/USC/PRSI liability.
 
Many thanks for the reply. I'm new to the world of self employment so perhaps I have got some of the wording wrong. I'll try to clarify...

I set up and registered a business earlier this year. The business is just myself, I have given it a name so it's myself the individual, trading as "Insert Brilliant Name". I have no employees, I provide the services myself.

If I decide to partner with this other startup and take shares and a director role, I could provide certain ad-hoc services under their name, Company B. I would then like to invoice for these services, from my own "Insert Brilliant Name" business to Company B (the company which I could now be a director in).

Does this make sense and is it a legitimate business practice?
 
Thank you for the reply, I intend doing that.

If there is any other advice out there I would greatly appreciate it too.
 
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