A sole trader is anyone that starts and operates their own business. Sole traders in Ireland are legally inseparable from their companies. They, therefore, have unlimited liability in case the business incurs any debts which means that sole trader has to pay for any debts that their companies incur.
What is the Process of Setting Up a Sole Business in Ireland?
You do not need to pay any charges if you need to start a sole business. All you need to do is identify the type of business you want to operate. Ensure that you have enough capital and pick a name for your business. Ensure that the name you choose is memorable and that it represents the operations of your business. Check to ensure that you have not used a name that is unavailable. If someone else is already using the name, you may not use it. You do not need to register as an employer or to file your returns to the CRO.
What is an Example of a Sole Trader?
There are many types of sole businesses that you may choose to operate depending on your needs. They include the following;
You may decide to run a small landscaping business. You can run and manage t without any help until it grows big enough to be a limited liability company or partnership.
Bakers or Chefs
If you like to cook or bake, you can start a sole business that allows you to prepare and serve food in your area.
Operating a Day Care
In-Home childcare can be a sole profitable business. You need to follow the legal requirements to ensure that you do not get into trouble with the law.
What are the Advantages of a Sole Trader?
Starting a sole business does not need a lot of money which makes it an excellent option for budding entrepreneurs. There are few legal costs. Accountants do not charge a lot of money for sole businesses because sole businesses do not have much work for them to do.
Running a sole business gives you complete control over your business. You do not need to consult anyone when making important decisions for the company. Running such a business makes adoption and implementation of policies fast as no investors or partners are pushing you to implement ideas and strategies that do not interest you. If any of your thoughts do not go as planned, you do not need to explain it to anyone.
You Set Your Schedules
You do not have to report to work if you do not want to. You can work longer or shorter hours and even take breaks as you wish. Having this freedom allows you to attain a balance between your social and work life.
Fewer Legal Processes
As a sole trader, you do not have to register accounts with the Companies Registration Office (CRO) if you are the only one who is working for your firm.
You Enjoy All Your Profits
All the money that you get in profits from your sole business belongs to you. You may use it to expand the company or for your personal needs. You do not have to share it with partners as there are none. This may encourage you to work hard towards the growth and development of your business.
Personalized Customer Service
If you run a sole business in Ireland, you are the only person who interacts with your customers. The close interaction makes it possible to know about their personalities, interests, and needs. You can tailor your customer services to satisfy these needs.
Sole traders know that they need to work hard for them to be paid. All the responsibility falls on them. Even though they have a lot of freedom, they learn to be disciplined to keep earning a living.
What are the Disadvantages of Being a Sole Trader in Ireland?
Too Much Pressure
Even though sole traders can take breaks and days off, they know that the success of their businesses depends entirely on them. This can be a lot of pressure especially for those who are starting out.
All the Liability Falls on One Person
The law considers the sole trader and their business as a single entity. If the company is in debt, the trader has to pay for them. If the business becomes bankrupt, the trader’s assets may be on the line. The same applies if a customer sues the company for injury or property damage.
Sole traders do not have to rely on anyone for advice or suggestions when making decisions about their business. This means that they rely entirely on their own knowledge or experience. If they do not have a lot of experience in running businesses, they are likely to make poor decisions.
You Have to Multi-Task
Being a sole trader comes with a lot of responsibility because you will be responsible for all the operations in your business including sales, marketing, management, and everything else. You have to learn to do everything which may mean working more extended hours to ensure that everything is working as it should.
If you plan to start a business in Ireland, consider being a sole trader. It is one of the simplest forms of small business ownership. It is easy to establish and operate, and it gives you a chance to own a business without complications.