Choosing whether to conduct your business in Ireland as a sole trader or a limited company is a key decision for every new business. There are some important differences to consider.
So often people are working hard at the wrong thing. Working on the right thing is probably more important than working hard.
– Caterina Fake, Flickr Co-founder
Sole trader is somebody who is self-employed but is also the exclusive owner of their business. As the sole owner of your business, you and your business is considered as one legal entity, which simply means you are entitled to all profits or loses (after tax) and all benefits and associated risks.
Pros and Cons of being Self Employed
A limited company (LTD) on the other hand is a distinct legal entity from the business owner (director). As director, you’re responsible for the legal and financial decisions your business makes, but your business’s assets and liabilities are totally separate from your own individual finances. Which means all profits and losses belong strictly to the company.