As a new entrepreneur one of the first major decisions you have to make, preferably before you start trading, is what legal structure to use. Generally, you can choose this options: A Company, A Sole Trader, Partnership.
SETTING UP IN BUSINESS
As a new entrepreneur one of the first major decisions you have to make, preferably before you start trading, is what legal structure to use. Generally the following choices are available:
A CompanyA Sole TraderPartnership
Each structure has its own distinct advantages and disadvantages which require careful consideration and appropriate advice should be taken to ensure your business takes the most appropriate legal form to suit you depending on your circumstances. Items to be considered include: Your Personal circumstances; The Type of Business you are considering; Whether you wish to protect your personal assets from the outset; Anticipated level of turnover; Funding i.e. loans, personal investment, 3rd party investment etc. Enterprise funding when setting up a business, if and when approved, is generally paid over to a limited company structure.
COMPANY
While the immediate benefits of setting up a company are apparent, in that a company is a separate legal entity and its shareholders may have limited liability (depending on the type of company incorporated), there are other considerations to be taken into account. A Company requires a minimum of two directors aswell as a company secretary. The responsibilities of being a director should not be taken lightly. Failure to comply with company legislation can result in financial penalties, disqualification from acting as a director and ultimately the strike off of the company.
SOLE TRADER
A Sole Trader is one of the most frequently used and simplest types of business structures. A Sole Trader essentially operates either in his/her own name or under a registered business name. In comparison to a limited company, the sole trader is personally liable for all business debt or legal actions against the business. However the advantages are that all decisions are made by the sole trader, business expenses incurred in running the business are allowable deductions against profits, all profits are kept by the owner without disbursement, no annual returns are required to be filed however tax returns are obviously still required).
PARTNERSHIP
A partnership is where two or more people agree to run a business together in which the partners share with each other the profits or losses of the business. A partnership business name must be registered and it is strongly advised that a formal partnership agreement is drawn up to govern the relationship.
Generally partners will be jointly and severally responsible for running the business and if it fails all partners are jointly and severally responsible for the debt. A limited partner can exist whereby they can contribute capital and not be held liable for the debts of the Partnership.
Similar to a sole trader the partners in a partnership generally assume full liability for any debts of the business. The above is a brief overview of the type of business structures available to entrepreneurs when starting a business. The ultimate decision will depend on an individual’s circumstances and personal decision. Should you have any queries in relation to the above please contact us at:
Cosgrove Gaynard Solicitors
39 Waterloo road, Dublin 4
Phone: 01 234 0044
Fax: 01 234 0047
Email: info@cgsolicitors.ie
Web: www.cgsolicitors.ie
Cosgrove Gaynard Solicitors provides expert legal advice in residential and commercial property transactions throughout Dublin and across Ireland. Our property law team acts for buyers, sellers, landlords, tenants, developers, and investors, delivering efficient, practical, and results-focused legal services.With extensive experience handling property transactions in Dublin City and surrounding areas, we guide clients through every stage of the conveyancing and property process with clarity and confidence.
Text LinkAt Cosgrove Gaynard Solicitors, we advise clients across Ireland on personal injury and road traffic accident claims. Our team can guide you through every stage of the process — from initial consultation to resolution. This guide explains how to claim compensation after a road traffic accident in Ireland, what steps to take, time limits involved, and how the process works.
Text LinkUnder MiCA, most public token offerings or exchange listings require a mandatory disclosure document called a crypto-asset white paper. It’s not marketing and not optional — it’s a legally prescribed document with strict content, liability, and formatting rules. Think of it as a regulated prospectus-lite for crypto.
Text LinkWhen a child is injured in a creche or childcare facility, it can be every parent’s worst nightmare. Beyond the emotional distress, parents are often left wondering who is responsible, what their legal rights are, and whether they can make a personal injury claim in Ireland.
Text LinkBuying your first home in Ireland is one of the most exciting but complex financial decisions you will ever make. The legal process of buying property — known as conveyancing — is a critical part of that journey. This guide walks you through every stage, explains key stages and timelines, and gives practical tips that will save you stress (and money) and perhaps even the entire transaction.
Text LinkBuying your first home is one of the biggest financial and legal decisions you will ever make. In Ireland, rising house prices mean many first-time buyers struggle to bridge the gap between their mortgage, savings, and the price of a new home. To address this, the Irish Government introduced the First Home Scheme, a shared equity scheme designed to help first-time buyers and certain other purchasers buy a newly built home or self-build property.
Text Link39 Waterloo Road,
Dublin 4
DX 109060 Fitzwilliam
Phone: 01 234 0044
Fax: 01 234 0047