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Setting up a new business can be stressful and there is a lot involved in doing so. In this article, we are going to go through some of the more important parts to consider if setting up a new business in 2022.
Write a Business Plan
A business plan is a document that outlines the goals and objectives of a company. It includes an analysis of the company’s financial position, marketing strategy, and operational plans. A business plan can be used to evaluate the potential success of a business and be to identify areas for improvement.
The importance of writing a business plan is that it helps potential business owners clarify their goals and strategies for their venture. It also provides them with an opportunity to think about the future and anticipate problems before they happen.
Assess your Finances
You should assess your finances and look at the overhead costs involved in running the business. Then you can assess that you have the finances available for this venture or alternately you may look into grants or small business loans.
Decide what type of company structure you want to go for.
There are a few business structures that you can set up in Ireland such as
Private Company Limited by Shares (LTD)
It’s one of the most common types of business structure in Ireland. A Limited Company benefits from limited liability which means directors/shareholders are generally only liable for the amount they have invested in the business
A sole trader is when you set up a business on your own. Being a sole trader is relatively straightforward to set up, but if your business fails, all your assets could be used to pay your creditors.
Designated Activity Company (DAC)
As part of the New Companies Act 2014, which came into force on the 1st June 2015, a new company type, the Designated Activity Company (DAC) was created. This limited company type is applicable to those companies who wish to outline and define a specific type of business in their Constitution, rather than have unlimited powers as per the LTD company type.
Company Limited by Guarantee
A company limited by guarantee is a company that does not have a share capital and the constitution of which provides that the liability of its members is limited to such amount as
the members may, in the constitution, respectively undertake to contribute to the assets of the CLG in the event of it being wound up.
Open a Business Bank Account
Opening a business bank account is an important step in starting a business. It is the first step in getting your business ready to accept payments and make deposits.
Registering your Company
When you start a business, you must register with Revenue and the Company Registration office. (CRO) You need to register your company name, details of who your director, secretary and shareholders are. You need to register your own address and your businesses address and you need to submit a form of valid ID and proof of address such as a utility bill. If you required assistance with the company formation and registration, you can contract company secretarial services from accountancy firms like Cronin & Co.
Consider Taxes, Payroll, and Bookkeeping
When you start a new company, you must register for tax with Revenue. You would be paying tax such as universal social charge, class S PRSI and VAT. If your business employs other people, you must have a payroll that includes tracking an employee’s hours/pay and deducting their taxes and possible pension. Bookkeeping is very important, it’s the practice of recording the financial transactions of a business. You should be recording assets, liabilities, equity, revenue and expenses.
How Cronin and Co Can help We can provide your business with a tailored solution to suit your needs and take the burden out of maintaining proper books, records, and reconciliations. We can help with business advisory, company formation, and tax accounting. These solutions can be provided on a monthly, quarterly, annual basis or even to cover the maternity/sick leave of an employee.
So, whether you are an established business or just starting out, Cronin & Company can implement and maintain an efficient outsourced bookkeeping and payroll service, freeing up your time to focus on the core activities of your business.
For more information on this service please contact [email protected]