Taxation
For all businesses, tax is a key obligation and it is essential to ensure that you are fully aware of and comply with your company's obligations. The form your business takes can dictate your tax obligations and this may be an important consideration before setting up your business.
Sole traders, as individuals, are liable for income tax in respect of their income. Sole traders do not pay Corporation Tax. The individual members of a partnership are liable for income tax in respect of their share of the partnership income. Partnerships are also not liable for Corporation Tax. Limited companies are liable for Corporation Tax.
Once you start a new business, you should advise the Revenue. Shortly after registering with Revenue you may receive a visit from a Revenue Official to assist you with any queries regarding the tax system. A comprehensive guide containing all relevant information regarding registering your business for taxation and meeting your taxation obligations can be downloaded from the revenue website. It may be useful to discuss the issue of taxation with a qualified professional such as accountant or tax advisor if you have particular queries.
For some additional information on taxation, please read Chapter 7 in A Guide to Starting Your Own Business in Waterford City.