Self employed sole trader with turnover of €50k sould I become a Ltd Co?

[Tiler]

I'm self employed, will have a turnover of approx €50000 this year,and can't decide whether to become a limited company or remain sole trader.

I registered for vat this year but I rarely supply materials.

Anyone any advice? Thanks

 

[ClubMan]

Re: Self employed or company

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Thread moved.

 

[Glenbhoy]

Re: Self employed Sole Trader with turnover of €50k sould I become a Ltd Co?

highly unlikely, there are plenty of threads on this including in key posts - in a nutshell, there are very few advantages to being limited (mainly because 'limited' is a bit of a myth), plenty of disadvantages such as compliance costs.

 

[HotdogsFolks]

Re: Self employed Sole Trader with turnover of €50k sould I become a Ltd Co?

I vaguely remember something along the lines of...it makes no sense to convert to a limited company unless you are making more than 120k a year.

 

[dam099]

Re: Self employed Sole Trader with turnover of €50k sould I become a Ltd Co?

I vaguely remember something along the lines of...it makes no sense to convert to a limited company unless you are making more than 120k a year.

There is no rule of thumb, I've seen one poster here suggest that you should not consider it unless the business will be making more profits than what you require to live on as your income and I personally feel that is probably a good guideline.

 

[HotdogsFolks]

Re: Self employed Sole Trader with turnover of €50k sould I become a Ltd Co?

There is no rule of thumb, I've seen one poster here suggest that you should not consider it unless the business will be making more profits than what you require to live on as your income and I personally feel that is probably a good guideline.

Well, I meant for tax reasons. Can't remember the details, but it is around the €120k mark where you will save movey by converting to a company.

 

[ubiquitous]

Re: Self employed Sole Trader with turnover of €50k sould I become a Ltd Co?

As dam099 says, there is no universal cut-off point where one would save money by having a limited company. The €120,000 figure might well apply in a particular instance but has no particular relevance other than that. I have seen people earning a lot less than €120k per year from self-employment do very well for themselves by setting up limited companies. Equally I have seen cases where people have got themselves into serious doo-doo by trying to run their business through a limited company when this was clearly not an appropriate structure for them based on their own circumstances.