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Incorporation TaxAssist Accountants [Venue / Date]. The Advantages of Incorporation . Commercial Advantages . Protection of personal assets Improved business status Winning new business More attractive to investors Company pension scheme attracts company tax relief . Tax Advantages .

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Incorporation TaxAssist Accountants [Venue / Date]

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Incorporation taxassist accountants venue date

IncorporationTaxAssist Accountants [Venue / Date]


The advantages of incorporation

The Advantages of Incorporation


Commercial advantages

Commercial Advantages

  • Protection of personal assets

  • Improved business status

  • Winning new business

  • More attractive to investors

  • Company pension scheme attracts company tax relief


Tax advantages

Tax Advantages

  • Reduced tax on profits

  • Corporation tax rate of 12.5% for trading companies

  • Assist in tax planning and succession planning


The disadvantages of incorporation

The Disadvantages of Incorporation


Commercial disadvantages

Commercial Disadvantages

  • Filing accounts publicly

  • Administration burdens

  • Business and private expenditure cannot be mixed

  • Tax savings uncertain


Tax disadvantages

Tax Disadvantages

  • Treatment of trading losses

  • Tax position on the sale of the business – can lead to double taxation if not planned correctly

  • Withdrawals normally trigger a tax implication


Other factors

Other Factors

  • Plant/Machinery/Vehicles

  • Spouse and Family

  • Commercial image


Case study

Case Study

  • John is a sole trader and currentlyhas profits of €110,000.

  • He needs €60,000 gross to meet his day to day living expenses

  • John is single


Case study1

Case Study

Sole Trade

Limited Company

110,000

60,000

50,000

(6,250)

43,750

38,019

81,769

  • Profit110,000

  • John’s wages -

  • Net Profit110,000

  • Tax on profits(48,281)

  • Profit after tax 61,719

  • Plus net wages-

  • Total after tax61,719


Case study2

Case Study

  • Summary:

    • Tax saving of €20,050 by incorporating

    • Important to note that €43,750 is held by company


Thank you

Thank you!

Please feel free to ask any questions


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