just lost my job, startup advice badly needed...

S

spongebob101

Guest
Hi all

have just been made redundant, which is a bit of a shock , allthough am viewing it as a good thing, as i have been toying with the idea of freelancing for a bit...allthough im very much in the deep end here and would like some advice on the following:

-am setting up a business bank account, does it matter if its one of the top 2 institutions (ease for clients?)aswell as a seperate account for the taxman...

-when charging a client (eu 6,000 lets say) how much or what is the percentage i need to cover myself for tax ( income tax?)

- probably wont be required to start paying VAT, apart from filling out a monthly declaration any pros/cons here? what do i charge?

- working in the design industry, whats the best to register under ..sole trader/registered business name?

excuse me if these seemkind of obvious but would really appreciate some feedback so i can make some decisions this week...

thanks in advance...
 
First thing, get down to your local office to sign on. even if you're going self-employed.

Then, have a look at the publication "Toil adn Trouble" on www.welfare.ie

good luck!
 
thanks a mill, not leaving for another 2 weeks, so will sign up when im out of there...
will look at that booklet...
cheers guys...
 
As well as signing on if you are unemployed for any length of time you might want to [broken link removed] tax paid to date this year.
 
Firstly SpongeBob101,extremely sorry about your bad news,it is indeed a big shock,I was in the same position 4 years ago.
I also viewed being made redundant as an opportunity to work for myself and use the skills I had gained to start my own business. I have to say the first 12 months were a struggle and after a while,whilst I did get some work,I realised my line off work would never sustain me full-time.
I got into the grass-cutting business,very small at first,but over the last couple of years it has grown alot and so now,between the two,I have plenty of work and a good income.
1)Where you have your bank account doesn't matter
2)It is very difficult to put a figure/percentage on what you need to cover yourself for income tax,you have to work-out your overall base cost,and that plus what you want to earn is what you charge,bearing in mind what compeditors charge
3)As long as your turnover is below 35k (raised in recent budget),you do not have to register for VAT,although you can if you wish
4)I am registered as a sole trader,you could register as a business,its personal preference really and what image you want to project to your prospective clients

The main thing is to stick in there,there will be difficult times and times you'll probaby want to quit,at least your starting well by viewing the whole thing positively

Best of luck
 
also, if you are unemployed for any length of time it may be advisable to apply for a medical card.
 
spongebob101 said:
-am setting up a business bank account, does it matter if its one of the top 2 institutions (ease for clients?)aswell as a seperate account for the taxman...
Click to expand...
Go with a bank that gives you the best deal and service.

spongebob101 said:
-when charging a client (eu 6,000 lets say) how much or what is the percentage i need to cover myself for tax ( income tax?)
Click to expand...
You have to pay:
business running costs,
paye,
prsi&health

spongebob101 said:
- probably wont be required to start paying VAT, apart from filling out a monthly declaration any pros/cons here? what do i charge?
Click to expand...
If you are supplying business customers, it makes sense to register for vat,
as they are vat registered so it will not add any extra costs and
it will save you money on purchases for the business.

spongebob101 said:
- working in the design industry, whats the best to register under ..sole trader/registered business name?
Click to expand...
sole trader/registered business name are the same thing.
You register a business name to operate as a sole trader rather than using your real name.
Its sole trader / limited company
 
Hi, I'm also in the design business (graphic/web design) and recently went self-employed. I set up as a sole trader and haven't seen any reason to switch to Ltd yet. However, I did register for VAT for a number of reasons but mainly because my clients were all businesses so it made no difference to my pricing structure.
 
I am planning to go out on my own in October and have started a start your own business course - they are great for covering things like VAT , taxation (and all the breaks you can avail of) cash flow managment, sole trader vs Ltd company etc. I am doing the FAS one which I am finding full of useful information. Although I am in my own profession 20 years and considered top end - I work for a very large company and that is very different from running a small business even in the same industry. So I really feel a course like this and lot of research are invaluable. The Money Doctor book and web site r also good sources of info for small businesses

Good Luck
 
Hi Spongebob101, firstly congrats on getting the idea of starting up a business yourself. I did something similar on a small scale over 12 months ago and all is well. Firstly ensure you use all your spare time to research your new business and market. I begun as a sole trader but then for all the benefits accosciated with being a Ltd changed over to a company. I mainly did so because my family home would then be secure as there was no limilted liability attached to me. I used the guys at formit.ie to do so, as i could then focus on my own business. Some usefull sites are:
www.cro.ie or [broken link removed] or . Good luck.
 
Don't forget the City & County Enterprise Boards if you plan to start up a small business of your own. They have courses, mentoring, grants & some also have office facilities at subsidised prices whilst you are getting the business off the ground.
Good Luck !
 
wow!

thanks so much for all the info/help/encouragement folks...
will print this all out, and have a read over the next few days and look at the advice here...

no doubt ill be back on with more questions, but for now - big thank you...

cheers!
 
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