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''Umbrella Company'' | |||
An Umbrella company is essentially a payroll agency. They put you on their books for a monthly fee. | |||
You send them your monthly invoices and expenses; They collect the cash, do your monthly payroll, pay your tax, | |||
and transfer your wages into your accounts. | |||
'''The Pros:''' | |||
<ul> | |||
<li>Hassle free</li> | |||
<li>No need to set up a company</li> | |||
</ul> | |||
'''The Cons:''' | |||
<ul> | |||
<li>Can be relatively expensive</li> | |||
<li>Most payroll companies will not expense capital purchases, i.e.: Purchasing a computer for business use.</li> | |||
</ul> | |||
''Sole trader'' | |||
A Sole trader is a one-man band. You send out your own invoices, keep a record of your own expenses, and pay yourself. | |||
At the end of the year you declare your taxes to the revenue. | |||
'''The Pros:''' | |||
<ul> | |||
<li>Relatively Hassle free</li> | |||
<li>No need to set up a company, though you should register a business name.</li> | |||
<li>If you earn less then €20,000 you are not liable for tax.</li> | |||
</ul> | |||
'''The Cons:''' | |||
<ul> | |||
<li>Unlimited liability - Your personal assets are at risk from lawsuits or debts of the company. If you manage to burndown | |||
your employers offices, you're personally liable for the cost.</li> | |||
<li>Most recruitement companies will not deal with a Sole trader.</li> | |||
<li>Does not look professional.</li> | |||
<li>Does not look professional.</li> | |||
</ul> | |||
''Limited Company'' | |||
A Limited Company is a registered company with limited liability and directors, and all that grown up stuff. | |||
'''The Pros:''' | |||
<ul> | |||
<li>Necessary to form a limited company. This can be done by a company formation service (Costs around €350), or | |||
by yourself. Check [www.cro.ie]</li> | |||
<li>No need to set up a company, though you should register a business name.</li> | |||
<li>If you earn less then €20,000 you are not liable for tax.</li> | |||
</ul> | |||
'''The Cons:''' | |||
<ul> | |||
<li>Unlimited liability - Your personal assets are at risk from lawsuits or debts of the company. If you manage to burndown | |||
your employers offices, you're personally liable for the cost.</li> | |||
<li>Most recruitement companies will not deal with a Sole trader.</li> | |||
<li>Does not look professional.</li> | |||
<li>Does not look professional.</li> | |||
</ul> | |||