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Incorporation TaxAssist Accountants [Venue / Date]

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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  1. IncorporationTaxAssist Accountants [Venue / Date]

  2. The Advantages of Incorporation

  3. Commercial Advantages • Protection of personal assets • Improved business status • Winning new business • More attractive to investors • Company pension scheme attracts company tax relief

  4. Tax Advantages • Reduced tax on profits • Corporation tax rate of 12.5% for trading companies • Assist in tax planning and succession planning

  5. The Disadvantages of Incorporation

  6. Commercial Disadvantages • Filing accounts publicly • Administration burdens • Business and private expenditure cannot be mixed • Tax savings uncertain

  7. 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

  8. Other Factors • Plant/Machinery/Vehicles • Spouse and Family • Commercial image

  9. 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

  10. Case Study Sole Trade Limited Company 110,000 60,000 50,000 (6,250) 43,750 38,019 81,769 • Profit 110,000 • John’s wages - • Net Profit 110,000 • Tax on profits (48,281) • Profit after tax 61,719 • Plus net wages - • Total after tax 61,719

  11. Case Study • Summary: • Tax saving of €20,050 by incorporating • Important to note that €43,750 is held by company

  12. Thank you! Please feel free to ask any questions

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