Tax assistance from Westland Tax & Accountancy Ltd, Dublin, Ireland - Phone +353 (0) 86 8231823 for a no obligation meeting

Limited Company

Advantages and disadvantages of operating as a limited company. Tax Assistance and accountancy and business formation advice from Westland Tax & Accountancy Ltd., Dublin
It is important to realise that a limited company is a separate legal entity from its shareholders. This separate identity carries advantages & disadvantages.

What are the advantages of operating as a Limited Company?

No Personal Liability – Providing you have not engaged in fraud or traded recklessly, and providing you have not signed personal guarantees, you will not bear personal liability for the debts of the company in the unfortunate scenario that it fails.

Low Tax Rate on excess profits – The current Corporation Tax on trading profits for a limited company in Ireland is 12.5%. It is important to realise that this is only an advantage if you can afford to leave a portion of the profits in the company & do not need to draw all the profits out as a salary.

What are the disadvantages of operating as a Limited Company?

Higher compliance costs - the cost of set up & the ongoing costs for a limited company are higher than for a sole trader.
Loss of privacy – each year the accounts for every limited Company trading in this country must be filed the Company’s Office. These accounts must be accompanied by an Annual Return, which lists the Directors & Shareholders and also contains financial information about the Company. All Documents filed with The Company’s Office are open to public Scrutiny.

It pays to take proper advice when deciding which type of Business Entity to trade with so contact us for a no obligation first meeting

Read about Corporation Tax.