Formalities

Choosing and registering a legal structure for your business: Sole Trader

Setting up as a sole trader needs almost nothing by way of legal formality, apart from registering with the Registrar of Business Names at the Companies Registration Office (www.cro.ie), which is optional.

An advantage of being a sole trader is that apart from normal tax returns, which every taxable person must make, a sole trader is not required to make public any information about the business.

The downside of being a sole trader is that you have no protection if your business fails. All your assets become available to pay off your creditors.

Now consider the other legal structures that you can adopt for your business:

• Partnership
• Limited liability company
• Co-operative.

Alternatively, move on to consider the other aspects of formalities:

• Choosing and registering a name for your business
• Registering for taxation
• Setting up accounting systems
• Ensuring that your business meets all applicable legislation and regulations
• Ensuring that your business meets all appropriate quality standards
• Opening a bank account
• Arranging for appropriate insurance
• Protecting your business' intellectual property.