1. Be organised, be ready and don’t be late

Under self-assessment there is a common date for the payment of tax and filing of tax returns – the 31^st of October each year. With all the demands of starting a new business, this date can often sneak up on you. It is absolutely vital that you are ready for this date each year and have everything you need optimally organised to make the process as easy, quick and pain-free as possible. You can file your return in advance of this date once you are ready. Do not leave it until the last minute to file your return. Not only are there fees for missing the deadline, if you rush there is more chance that you make a mistake or leave something out, which can also result in a financial penalty or even a potential tax audit.

2. The Start Your Own Business Relief

There are a number of tax reliefs, deductions and exemptions in place that contribute towards the creation of jobs. The start your own business relief provides tax relief for someone who has been unemployed for at least 12 months before starting a qualifying business, and provides an exemption from income tax up to a maximum of €40,000 per annum for a period of two years.

3. Keep receipts and records of all your relevant expenses

Once an expense is directly related to the running of your business, you can make a claim for it in your sole trader tax return. However, you must be able to prove that you have made the expense by keeping all relevant receipts and a record of them, for six years. “Allowable expenses” for the day-to-day running of your business include items such as: the purchase of goods for resale, rent, rates, repairs, lighting, heating, the running costs of vehicles or machinery used in the business, accountancy fees, interest paid on any monies borrowed to finance your business, lease payments on vehicles or machinery used in the business, equipment, motoring expenses and commuting expenses. Things like mobile phones and cars can be a tricky area as many sole traders use them for their own personal use as well. Only the usage that is directly related to the running of the business can be claimed.

4. Don’t overlook your pre-trading expenses

Because you’ve only recently launched your business, you may be eligible to claim a tax deduction for some qualifying pre-trading expenses in respect of the business in the three years before the commencement. For tax purposes, these expenses are treated as if they had been incurred at the time that the trade started. These may include business-related costs like: leasing costs, legal fees, the cost of preparing business plans and feasibility studies, accountancy fees, advertising costs and rent paid for the premises from which your business operates.

5. Broaden your understanding of allowances

While the reliefs available to you when doing your income tax return are enough to keep you busy, there are other assets for which you may be entitled to claim a tax deduction for. If you look hard enough, they can make a big difference when getting your new business off the ground. Things that can easily be overlooked include things like intellectual properties your company may have acquired such as trade names, brands, know-how copyright and even good will, assets the cost of which qualify for tax relief; research and development costs; and even tax treatment on any losses you incur.

About the Author

Selfemployed.ie have over 25 years experience helping people through their self-assessment and income tax returns. So, if you are self-employed, involved in a start-up, working on a contract basis, or earning any other second income and need any help with any aspect of filing your income tax return, you can get professional, experienced income tax service starting from just €150 (+VAT). Get in touch with the experts today to get started.

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One area where people are traditionally slow to make the move is with their accountant as they feel it can be very time consuming and lead to a lot of headaches. Getting the right accountant for your business is of paramount importance and if you are not satisfied with your current accountant you need to make the move!

Below we look at some of the reasons businesses give for not making the move and why they should not hold you back:

There is loads of paperwork to complete –

The switching process is actually very simple. Once you find a new accountant more suited to your needs they will send a letter to your old accountant informing them that you have decided to switch and requesting the latest financial information relating to your business. The old accountant will then give their clearance to the new accountant to take over along with the information they requested and the switch is complete. You may wish to contact your old accountant yourself out of courtesy but it is not a necessity.

I need to wait until my last set of accounts are finished –

The process of switching accountant can take place at any stage during the year. The old accountant will need payment for any work done to date but a new accountant can pick up straight from where the old accountant left off with the minimum of fuss

My old accountant will not release my books and records if I switch –

Accountants are bound by ethical guidelines and are required to release any property belonging to you should you request it. This should not be an issue but your new accountant will assist should any issues arise.

Revenue keep an eye on people who switch accountants –

Switching accountant will not trigger any suspicions amongst Revenue as it is seen as a normal part of business life whereby people will choose to switch service providers from time to time, they will not see it as an attempt to conceal anything.

A new accountant will not understand my business like my old accountant does –

A good accountant will be able to get to grips with your business in a very short period of time and it has the added benefit of having a fresh set of eyes look over your business. This can often result in new ideas being suggested which can grow your business and put more money back in your pocket.

This blog was written by www.Taxassist.ie – if you would like to find out more please email info@Taxassist.ie

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Your name is your identity. It represents you.

Similarly, your business is known by its name. Naming a business should be your top priority. This is how you, your employees, customers, and everyone else will identify and differentiate your business.

Choosing a business name is not as simple. You must consider a lot of factors before naming your business.

Make it count

It is not just your products and the business idea that drive sales and profit but the name of your business has its own unique value. The idea is to make your business name add value instead of just being another name.

It should be attractive and must appeal to your target audience. If it doesn’t, it will not count.

When a person will hear about your business, the first thing that he will do is listen to its name and will try to connect to it (emotionally and otherwise). This is the point where the name should be attractive and must appeal to a wider audience in the first attempt.

Keep it simple

Alexandra Watkins, the chief innovation officer of Eat My Words, says:

“Any time you have to explain your name or apologize for it, you’re just devaluing your brand.”

Try to keep the business name short and sweet. Something that is extremely easy-to-pronounce and is easier to remember.

Better yet, use fewer words such as an abbreviation like CIA (Central Intelligence Authority). CIA is easier to pronounce and is simple as compared to the Central Intelligence Authority.

If you prefer a long business name that consists of two or more words, try using abbreviations or merge the two words such as advertorial, which is derived from advertising and editorial. This is known as a portmanteau word, a blend of words.

Anything that’s simple, easy-to-read, and easy-to-remember should be preferred.

Keep it short

Macy’s is a short business name. You can read it in less than a second as compared to Comme des Garcons.

Even if it is easy-to-read, if it is long enough, people won’t remember it. You have to remind them several times before they will learn the business name.

Needless to say, all the big brands that you see around have tiny names. You will hardly find big businesses having more than a single word in their names.

The rule is simple, keep it short – single word works best.

Uniqueness

Yes, it has to be unique. I am sure you know it.

Not just unique, but it must not be similar to another business – especially a famous business.

A unique business name will help your target audience and customers identify your business. It helps differentiate your business from the others.

When we say unique, it doesn’t mean it should be something awkward. The best names are the ones that are true representative of your business and/or product.

Best Buy is a great example. The business name is unique and it clearly shows what it is all about.

Use domain name

It is practically not possible, as of today, to launch a new business without a website. Even if you are starting a small local restaurant, you need a website for it.

One of the simplest strategies for choosing a name for your business is to hook it to the domain name. Look for a nice and clean single-word domain and name your business on the domain name.

Finding single-word attractive and simple domain names is a challenge in itself because all the best names are already taken.

Here are a few tips to find or generate a domain name from scratch which can be ultimately used as your business name.

• Using a foreign word will open new doors. Try naming your business on a foreign word. You will be able to grab a domain name easily.
• Create a new word from scratch and buy the domain name. Nobody knew Google before the search engine giant named it. Most of the business names are actually created from scratch.
• Do no follow the trend instead come up with something totally out-of-the-box, and it will work.

Mistakes to avoid

There are certain mistakes that must be avoided when naming your business.

Do not use common words

Refrain from using simple words that are used in daily life such as salt, electric, or business directory. These are simple business names but they are not unique. It should be simple but not so simple that it should merge and mix with other words and lose its identity and uniqueness.

No personal names

Do not use your name as your business name. While it is a common trend and it has worked exceptionally well for brands. But it is not a decent approach to naming your business. It doesn’t help grow your brand and a business name on your personal name will not convey any message to your target audience.

Mark Tiger doesn’t mean anything for the end-users. These types of business names are bad at creating an emotional appeal for the target audience.

No region-specific business names

Do not use a country, city, or state name in the business such as Florida LED bulbs. While this sounds extremely attractive. It is appealing for a specific geographic location but this is generally a bad idea to use geographical locations in the business name. Things get tough when your business grows.

There is a reason why Kentucky Fried Chicken was renamed KFC.

When your business grows and you have to move into new markets and regions, such a name will do more harm than good. Your potential customers will assume that your business is not available in their region.

Besides, people from other regions will not be able to connect emotionally with the brand. If you are born in California and have been living there for 35 years, will you be able to attach emotionally with Singapore Burger? Naturally, you just cannot.

Do not make things hard for your target audience. Keep it simple and plain.

Conclusion

People do not remember the staff, they do not remember the CEO, all they remember is the business name. Half of the Facebook users do not even know the name of its founder but the people who do not use Facebook know about it.

Your business name is its identity.

Make it memorable and catchy. Period.

Dil is one of the co-founders of Insight Matters, a counselling practice in Dublin – because Insight really does matter.

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By definition, an entrepreneur is a person who is willing to take risks in lieu of a profit. Therefore, acknowledging and embracing risk is a fundamental aspect of starting a new business. There will always be a certain level of uncertainty that you will have to prepare for and deal with when you work on establishing a startup business.

Anticipating Failure

The temptation is to ignore these risks and move forward with a false sense of security mingled with irrational ambition. Such an approach will lead to inevitable failure. Once you enter the world of business, you put your name in an intense competition that will either get the best out of you or bring you crashing down. Therefore, you do not have the luxury to believe for a second that you are immune to financial danger. There are going to be plenty of ups and downs for a startup business. The smart thing to do is anticipate the failure before it arrives. This is what gives rise to the concept of risk assessment.

Risk Management

The reason why you would want to assess the risks of your new business is because you want to learn how to manage them. Risk assessment is a prerequisite to risk management. Risk management involves the ability to predict risks, identify risks and develop strategies to effectively counter these risks that threaten the success or survival of your business. The risk management plan is an integral part of any startup business plan. Understanding the potential risks of your business and figuring out ways in which you can reduce the impact of these risks is essential to maximizing your chances of succeeding in the world of business.

Identifying Major Risks

It is not humanly possible for an entrepreneur to list down all the risks that the business can encounter within the first few years. What the entrepreneur needs to do is identify some of the major risks that are likely to impact the startup. This requires the entrepreneur to research the industry and study risk patterns. In other, you need to learn from the mistakes of the businesses that you will be competing with soon.

There are many different types of major risks that you can possibly identify and these vary based on the nature of your business. For example, if you are starting a new business in the clothing industry, then your risks are going to be much different from that of an automobile business. That being said, there are some common major risks that can be associated with most types of new businesses. Here is a list of them along with brief descriptions:

1) Financial Risks

These cover both external and internal risks. External risks include changes in the interest rates or commodity prices. Internal rates on the other hand can be described as cash flow shortages, depreciation of assets and customers defaulting on payments without prior notice.

2) Legal Risks

A breach in the contract is the perfect example of a legal risk. Your business could also be in trouble for non-compliance with regulations imposed by the industry authorities. For example, there are plenty of businesses in the construction sector that are fined heavily for not maintaining onsite health and safety standards.

3) Operational Risks and/or Environmental Risks

If your key employee fails to show up to work for a month because of a serious illness, then your new business is going to be in hot water. This is a very simple example of an operational risk. Things could get even worse when there is an equipment breakdown or software failure. Imagine the kind of risk that your business would suffer if your inventor was wiped out by a natural disaster. All of these mishaps fall under the umbrella of operational risks.

4) Strategic Risks

This one is slightly more complicated than the others. A strategic risk is something you face when your business fails to adapt to changes in the market or the industry. For example, companies can go out of business if they are unable to respond to fluctuations in customer demand, innovation of superior technology or an overall increase in competition. Sometimes, companies fail simply because they are too short sighted to chase fresh business opportunities.

Risk Evaluation

Risk identification is only the first step to risk assessment. You need to analyze the severity of each risk to fully understand the kind of issues that you may have to deal with in the future. The simplest and most effective way of evaluating a risk is to scale the risk on the basis of the following two criteria:

a) The Chances of the Risk Occurring

b) The Major Consequences of the Risk

By grading your risks, you will be able to prioritize the ones that are a bigger threat to your business. Risks do not affect businesses one at a time. They are likely to attack you in combinations. As your new business grows and evolves, you will have to learn to deal with these combinations by employing effective strategies at the right time. Your risk assessment should serve as a platform for devising your risk management strategies.

Leslie works at Cube Online Marketing, a digital marketing company he founded in 2007.

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Despite the current position Ireland finds itself in, resourceful and entrepreneurial people and organisations continue to take calculated risks and launch businesses. In the first half of 2011, over 7,000 new companies have been incorporated in Ireland. This continues the trend seen in 2010 when over 14,000 new companies were set up. This was more than nine times the number of companies that were declared insolvent during the course of 2010 (1,500 companies).

BUSINESS STRUCTURES:

Once the decision has been made to start a business, very early consideration should be given to the legal form that the business will take. Some of the most popular forms available in Ireland include:

Sole Trader:

A ‘sole trader’ is where an individual person engages in business on his or her own account. It is easier to set up business as a sole trader than to incorporate a company in terms of the administrative hurdles to overcome. However, if the business fails, the individual can be sued in his or her own name and the individual’s personal assets or property can be taken to pay the creditors of the business. Creditors can bring bankruptcy proceedings against a sole trader where the creditor is owed money and the sole trader is unable to pay the debt.

If a sole trader wishes to trade using a business name (as opposed to their own personal name) they must register that business name with the Companies Registration Office (“CRO”).

Partnership:

A partnership is deemed to arise when two or more people (up to a maximum of twenty) carry on a business venture with a view to making a profit, without having formed a company. Where such a relationship is deemed to exist, it will be governed by the Partnership Act, 1890 (the “1890 Act”) unless a formal partnership agreement has been drawn up and agreed between the parties. Accordingly, the 1890 Act is commonly viewed as a ‘default’ partnership agreement. Many of the terms of the 1890 Act may not be appropriate for most modern day partnerships and so for that reason parties should give consideration to putting a written partnership agreement in place.

For example, under the 1890 Act, there is no right to expel a partner; any one partner can dissolve the partnership or have it wound up by giving notice (even if there are 19 other partners involved); the partnership will automatically dissolve upon the death of one of the partners; and there is no general power to retire under partnership law.

The 1890 Act further provides that the default position in relation to the sharing of profits of a partnership is that all profits must be shared equally between the parties – even in cases where the partners have contributed different amounts of start-up capital.

A partnership does not have a separate legal personality distinct from its partners and cannot own property in its own name. Instead, all property will be owned by the partners personally. A further consequence of a partnership not having a separate legal personality is that all partners are jointly liable for the contractual obligations of the partnership. They are also jointly and severally liable for any tortious acts of the partnership. This, however, may be subject to certain exceptions in the case of a limited partnership established under the Limited Partnership Act, 1907.

There are certain advantages to carrying on business through a partnership. For example, there is no requirement to file accounts with the CRO, there are no shareholders to protect and the concept of ultra vires does not apply. In addition, the profits of a partnership are only subject to income tax at partner level. This is compared to the ‘double’ taxation of profits in the case of a limited liability company (i.e. corporation tax is paid on company profits before any dividends have been paid to the shareholders at which time income tax is paid by the shareholders).

While partnerships do not have to go through any registration process to be formed, as with the case of a sole trader, if the partnership wishes to carry on business under a name which does not consist solely of the surnames of all the partners, then the firm must register this business name with the CRO.

Limited Liability Partnership:

Under the Limited Partnerships Act 1907, it is possible to establish a limited partnership (provided certain conditions are met) whereby one of the partners shall have limited liability. Accordingly, that partner’s liability in relation to the debts of the company will be capped at the amount contributed by him to the partnership. However, in order for that partner to maintain their limited liability status, they must not play any role in the management of the partnership. If that partner does play a role in the management of the partnership he/she shall become liable for all of the debts and obligations of the firm.

Limited Liability Company:

The most common vehicle used to carry on business in Ireland is the private limited company established under the Companies Acts, 1963-2009 (the “Companies Acts”).

Unlike a partnership, a private limited company benefits from having a separate legal personality. This means that once a company has been incorporated, it will be viewed as a separate and distinct entity from its owners and will be seen as a legal person in its own right (subject to certain exceptions) and may, for example own property in its own name.

A company is liable for its own debts and may be sued by its creditors. It may also, itself in its own name, sue its debtors.

A private limited company may have up to 99 members all of whom will have limited liability. Accordingly, their liability to creditors is limited to the full amount payable on their shares. This will vary from company to company. While limited liability is likely to be a key motivating factor as to why most businesses choose to incorporate, it is worth noting that despite the company having limited liability, it is common for banks to seek personal guarantees from the directors and promoters of new (and well established) companies which may expose those individuals to personal liability. Similarly, where a company is seeking investment from a third party, that third party may require certain warranties from the people behind the company. In most cases, this will be the existing shareholders. The giving of such warranties may potentially expose those shareholders to significant personal liability in some circumstances.

A company enjoys perpetual succession and, unlike a partnership, will not be dissolved as a result of the death of any (or even all) of its members. A company will only be dissolved by way of voluntary liquidation, compulsory liquidation or by being struck off the CRO register.

Unlike sole traders and partnerships however, every limited company is required to file certain financial statements with the CRO on an annual basis. These statements will be a matter of public record and can be viewed by anyone upon the payment of a small fee. This is compared to the position of a sole trade or partnership who both must only file their financial records with the Revenue Commissioners. Once filed, such records are not available for public inspection.

Public Limited Company or “PLC”:

A PLC must have a minimum of seven members, all of whom will have their liability capped at the amount, if any, unpaid on their shares. There is no upper limit on the number of shareholders in a PLC. A PLC is most common where a company intends to seek a listing on a Stock Exchange. The PLC must have a nominal share capital of at least €38,092, at least 25% of which must be fully paid up before the company commences business or exercises any borrowing powers.

INCORPORATION OF A LIMITED LIABILITY COMPANY:

In Ireland, one of the most popular ways to commence business is through a limited liability company. In order to incorporate a limited liability company certain documents must be lodged with the CRO. These include the memorandum of association, the articles of association and the CRO company registration form. These must be accompanied by the required CRO registration fee. The memorandum of association must set out the purposes for which the company is being established, and the articles of association must determine how the business of the company will be carried on.

Once the company has been registered in the CRO, a certificate of incorporation will be issued and the company will be free to carry out all acts permitted by the Companies Acts and its memorandum and articles of association. Where the promoters of a company have purported to enter into a contract prior to the company’s incorporation the Companies Acts enable the company to ratify the contract and assume responsibility for it. Failure on the part of the company to ratify the pre-incorporation contract will mean that the promoters will be personally liable for it and the company will not be bound.

POST-INCORPORATION:

Once a company has been incorporated the Companies Acts dictate that it must fulfil certain requirements. These include requirements to:

Keep certain statutory books (such as the register of members, register of directors and secretaries, register of interests);
Keep filings up to date in the CRO;
Have a company seal which must be used by the company when executing documents;
Hold an annual general meeting of its shareholders within the timeframe set out in the Companies Acts;
Keep minutes of proceedings at general meetings of the company and meetings of its directors;
Have a nameplate affixed outside every office or place where the company carries on business; and
Have specific information in relation to the company included on the company’s letterhead.

Unlike partnerships and sole traders, companies are subject to the doctrine of ‘ultra vires’. This means that any activity or contract entered into by a company will be void unless it falls within the list of objects for which the company was established as included in the company’s memorandum of association. Accordingly, when establishing a company, it is important for the founders to ensure that the objects clause contained in the memorandum of association is comprehensive and includes all possible activities the company may engage in.

SHAREHOLDERS AGREEMENT:

A further consideration when establishing a company is whether or not it is appropriate for the members to enter a shareholder agreement. Such an agreement deals with the day to day management of the company and may also, in most cases, deal with the exit of the shareholders from the company, dictate how shares can be transferred to third parties and provide mechanisms for the resolution of disputes between the shareholders.

While the articles of association also stipulate rules as to how the company is run, a shareholders’ agreement will generally remain a private document as it does not have to be lodged in the CRO and can therefore provide a higher degree of confidentiality in relation to a company’s internal affairs.

A potential benefit of having a carefully prepared shareholders agreement in place at the outset is that it allows the parties to have a properly defined structure and mechanisms in place to deal with difficult issues such as the death of one of the shareholders, transfer of shares to other family members, conflicts between family members or matrimonial difficulties.

Starting a new business can be risky, even at the best of times. It can also, however, be lucrative and rewarding when it works well.

When someone decides to establish a business, it is important that they take the appropriate legal, tax and other professional advice as to what is the most appropriate vehicle for that person to carry on business and how best to protect themselves if things do not work out as planned.

Where someone decides to set up in partnership with other people, serious consideration should be given to having an explicit written partnership agreement prepared to govern the specific obligations, entitlements, responsibilities and authorities of each partner.

Equally, where a limited liability company is set up, the parties should bear in mind the additional administrative and reporting requirements that come with having limited liability status.

In any event, where two or more people decide to establish a business together, they should be clear as to how the relationship can be ended. While everyone may have the best of intentions at the outset, things can, and often do, change.

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What is a company?
A limited liability company is a legal entity registered with the Government. It is widely accepted as the preferred structure for conducting business under. A company carries many advantages with it as well as some legal obligations that company Directors must adhere to.

Limited companies exist in their own right, distinct from the shareholders who own them. This means their finances are clearly separated from the personal finances of their owners.

Shareholders may be individuals or other companies. They are not responsible for the company’s debts (unless they have personally guaranteed a bank loan, for example). However, they may lose the money they have invested in the company if it fails.

Management and raising finance
A director or board of directors make the management decisions.
Finance comes from shareholders, borrowing and retained profits.
Public limited companies can raise money by selling shares on the stock market, but private limited companies cannot.

Records and accounts
Accounts are filed with the CRO.
The directors and secretary are responsible for notifying the CRO of changes in the structure and management of the business.

Profits are usually distributed to shareholders in the form of dividends.

Liability -Shareholders are not personally responsible for the company’s debts, but directors may be asked to guarantee loans to the company.

Choosing a name for your company
Choosing a name for your business is a creative and enjoyable process. It is also one that you need to get right. Customers will deduce a lot from your business name and first impressions count.

While it may be tempting to try to stamp your individual personality on your business name, there are many other issues to consider. Being objective and choosing a name which reflects your business strategy can be more valuable, especially as your business develops.

Creating the right impression
When you are generating ideas about a business name, you initially may want to focus on personal preference. However, an objective approach will enable you to consider the customer first.

Remember that your business name will be the cornerstone of your brand. It should work well wherever you use it – on the phone, in your logo, signage, stationery, advertisements, website, uniforms and any other media you plan to use to reach the market. See our guide on branding: the basics.

Points to help you decide on a name for your business
Do you want the name to reflect what your business does – framing, moving, cleaning, building? Or would something more abstract be suitable?
Would it be a good idea to include your own name?
Do you want a traditional-sounding name, conveying durability and old-fashioned values, or a modern name, suggesting a fresh, innovative approach?

Think about the future – avoid words or phrases that are likely to date quickly.
If you’re likely to be trading overseas, check that the name doesn’t mean anything inappropriate in the relevant languages, and that it can be easily read and pronounced.
Think about callers and customers – avoid very long names, strange wordings and unusual spelling.

Company names – the rules
To make sure your company name is acceptable, work through this list before you send your application to CRO. Ensure that:
your company name ends with limited, or Irish equivalents – this must not be used anywhere other than at the end of the name
the name isn’t offensive
the name isn’t the same as – or very similar to – one already in the register
the name doesn’t include any sensitive words or expressions – unless you have obtained permission to use them

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