Starting a business can be difficult and it is vital to ensure all the legalities are covered. You need to be advised as to the most appropriate business set-up for you. Whether you set up as a sole trader, partnership, limited partnership or limited company; A lot will depend on your appetite for risk and the type of business you are conducting.
It is essential that you would obtain advice from a solicitor before you begin a new business venture.
The simplest way to proceed is as a sole trader. You will only have to register for tax and PRSI with the Revenue Commissioners. You may decide to adopt a trade name in which case you should register it in the company’s office as all business names must be registered. This will also help protect your name from being used by your competitors.
Are you hoping to turn your business into a limited company? Are you a sole trader seeking legal representation? Then get in contact with Kiely McCarthy Solicitors today.
If you have a partner then you should have a partnership agreement drawn up by a solicitor. Otherwise your relationship with your partner is governed, whether you like it or not, by the Partnership Acts. You and your partner will be jointly and severally liable for the partnership debts and responsible for running the business.
A Limited Partnership is very similar to the General Partnership except that there is at least one general partner, who is personally liable for all debts of the firm, and one or more limited partners. Like shareholders of a limited company, limited partners of a Limited Partnership are only liable for debts of the firm to the extent of their contribution to the partnership. A limited partnership is more suitable for day to day business activities rather than for holding assets. There is usually one general partner and one or more limited partners. A limited company or a natural person may be a partner. A partner may contribute by way of cash goods or services.
This is a separate legal entity and is registered in the companies office. It has shareholders and they appoint directors to run the company. The main advantage is limited liability. If the company gets into difficulty then the shareholders are only liable to the amount they paid for the shares. In other words their personal assets are protected.
There are strict rules and regulations prescribed by the Companies Acts which must be followed and the duties of directors can be very onerous. Therefore it is strongly recommended that legal advice is obtained from the very outset.