Interactive Business Structure Comparison
Select a business structure to see detailed comparisons and suitability.
Sole Trader Overview
Setup Complexity
Very Simple
Liability
Unlimited Personal
Tax Rate
20-40% Income Tax
Setup Cost
€0-50
Pros & Cons
Advantages
- ✓Quick setup
- ✓Low cost
- ✓Full control
- ✓Simple tax
Disadvantages
- ×Personal liability
- ×Hard to raise capital
- ×No salary
- ×Limited growth
Detailed Business Structure Analysis
In-depth comparison across key business considerations.
| Criteria | Sole Trader | Partnership | Limited Company | DAC |
|---|---|---|---|---|
| Setup Time | Same day | 1-3 days | 5-10 days | 10-15 days |
| Annual Compliance | Form 11 | Form 1 | Form 1 + CRO | Form 1 + CRO |
| Tax Efficiency | Low | Medium | High | High |
| Investment Appeal | Very Low | Low | High | Very High |
| Credibility | Low | Medium | High | Very High |
| Ongoing Costs | €200/year | €400/year | €800/year | €1,200/year |
Which Structure is Right for You?
Use this decision framework to determine the best business structure for your situation.
Business Stage & Goals
Early Stage / Testing
Recommended: Sole Trader
- • Quick to start
- • Low cost
- • Easy to wind down
- • Simple accounting
Growth / Investment
Recommended: Limited Company
- • Limited liability protection
- • Tax efficiency
- • Investment ready
- • Professional credibility
Risk & Liability
Low Risk Business
Consider: Sole Trader or Partnership
- • Consulting services
- • Digital services
- • Professional services
- • Low capital requirements
High Risk Business
Recommended: Limited Company/DAC
- • Manufacturing
- • Construction
- • High liability sectors
- • Large contracts
Financial Considerations
Annual Turnover Under €50,000
Sole trader often most tax-efficient due to low income tax bands
Annual Turnover €50,000-€200,000
Limited company becomes more tax-efficient with 12.5% corporation tax
Annual Turnover Above €200,000
Limited company strongly recommended for tax efficiency and credibility
Changing Business Structure
You can change your business structure as your business grows and needs evolve.
Sole Trader to Limited Company
When to Consider:
- • Profits exceeding €50,000
- • Need liability protection
- • Seeking investment
- • Building credibility
Process:
- • Cease sole trader business
- • Incorporate new company
- • Transfer assets/contracts
- • Consider tax implications
Partnership to Limited Company
Benefits:
- • Remove personal liability
- • Better tax efficiency
- • Clear ownership structure
- • Investment opportunities
Considerations:
- • All partners must agree
- • Asset transfer implications
- • Shareholding structure
- • Professional advice needed
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