Incorporating a business – advantages and considerations
In the current climate, the idea of carrying out a business through a company has become topical in response to increasing income tax and health levy rates, the imposition of the Universal Social Charge and changes to the pension regime.
Forming a company has obvious taxation advantages but also the advantage of limited liability and succession planning.
Prior to setting up a company, it is important to consider:
- The assets of the business being transferred.
- The income streams which may be in the company to benefit from lower company tax rates; and
- The nature and structure of the company entity through which certain services will be conducted;
- Employees having terms and conditions transferred by undertaking.
- Dealing with insurance, suppliers, customers and the Revenue Commissioners.
- Additional compliance obligations.
- Looking out for opportunities that may arise through the incorporation process.
For further information please contact Mark Butler