Irish LTD vs Sole Trader
Picking the right business structure for Ireland. Side-by-side comparison.
Recommended for most businesses
LTD
Private Company Limited by Shares
€69/setup
- ✓ Limited liability — your personal assets are protected
- ✓ 12.5% corporate tax on trading profit
- ✓ Easier to raise investment
- ✓ Can hire employees on PAYE
- ✓ Looks more professional to clients
- ✓ Director loan accounts allowed
- ⚠ Annual return + accounts filing
- ⚠ Statutory compliance overhead
For solo freelancers
Sole Trader
Unincorporated, personal liability
€19/setup
- ✓ Cheapest to set up — no incorporation
- ✓ Minimal paperwork
- ✓ No annual return
- ✗ Unlimited personal liability — your house is on the line
- ✗ Income taxed at personal rates (up to 52%)
- ✗ Hard to raise investment
- ✗ Looks less professional to enterprise clients
- ✗ No legal separation between you and the business
Side-by-side comparison
| LTD | Sole Trader | |
|---|---|---|
| Setup cost (with us) | €69 (€19 + €50 CRO) | €19 (no CRO fee) |
| Personal liability | Limited | Unlimited |
| Tax on profit | 12.5% corp tax | Up to 52% personal income tax |
| Annual paperwork | Annual return + accounts (~€1k accountant) | Form 11 only |
| Hire employees on PAYE | Yes | Yes (registered employer) |
| Raise investment | Easy | Very hard |
| Sell the business | Sell shares | Sell assets only |
| VAT registration | Same thresholds | Same thresholds |
| Setup time | ~1 week | Same day |
Honest recommendation
If you'll earn over €40,000/year, plan to hire, want investor credibility, or simply want personal liability protection — go LTD. If you're testing an idea, freelancing solo, and turnover will stay below €40k, sole trader is fine to start.
You can always upgrade from sole trader to LTD later (it's easy with our wizard).
Take the wizard — get a recommendation →