Legal Checklist for Starting Your Business

Choose Your Business Structure

The first and important step is selecting the appropriate legal structure for your business. This decision significantly impacts your tax obligations, personal liability, and the administrative requirements you’ll face.

• Sole Trader: This is the simplest structure, offering full control to the owner. However, the owner is personally liable for business debts, meaning personal assets are at risk.
• Partnership: Suitable for two or more individuals, partnerships allow for shared resources and responsibilities. Unless a limited liability partnership is established, partners typically face unlimited liability.
• Limited Company: This structure provides limited liability, protecting the owner’s personal assets from business debts.
• Limited Liability Partnership: Subject to certain conditions, this structure allows for limited liability for some partners.
• External Company: This is a structure for foreign businesses operating in Ireland, similar to a branch office.

Register Your Business

Once you’ve chosen your business structure, you must register your business with the relevant authorities. This process varies depending on the chosen structure.

• Companies Registration Office (CRO): If you’re forming a limited company or using a business name other than your personal name, you must register with the CRO.
• Revenue Commissioners: You’ll need to register for tax purposes with the Revenue Commissioners, including VAT and corporation tax, as applicable

Choose and Register Your Business Name

Selecting a suitable business name is essential for branding and legal reasons

• Name Availability: Check the CRO’s CORE tool to ensure your chosen name is available and unique
• Legal Requirements: Limited companies must include “Limited” in their name.
• Trademark: Consider trademarking your business name to protect your brand identity.
• Domain Name: Secure a matching domain name to enhance your online presence.

Understand Tax Obligations

Businesses are subject to specific tax regulations, primarily VAT and corporation tax.

• VAT: Value Added Tax is charged on goods and services. Businesses must register for VAT if their sales exceed a certain threshold.
• Corporation Tax: The standard corporation tax rate for trading income is 12.5%.
• Seek Expert Advice: Consult with tax professionals to ensure compliance and optimize your tax strategy

Obtain Necessary Licenses and Permits

Depending on your industry, you’ll need to obtain the appropriate licenses and permits to operate legally.

• Industry-Specific Requirements: Research the specific licensing and permit requirements for your industry (e.g., food service, health services, construction).
• Government Resources: Utilize the Government’s resources to identify the necessary licenses and permits.

Consider Intellectual Property

Protecting your intellectual property is crucial for startups.

• Copyrights: Protect original works like literature, music, and art.
• Trademarks: Register trademarks to safeguard your brand name, logos, and slogans.
• Patents: Apply for patents for inventions and new technologies.
• Seek Legal Advice: Consult with one of the specialised solicitors in Sherwin O’ Riordan to develop a robust IP protection plan.

Comply with Employment Law

If you plan to hire employees, you must comply with Irish employment law. This is complex and has many obligations which are not immediately obvious. You should consult one of the specialised employment law team headed by David O’Riordan, to ensure you comply with the various pieces of legislation.

• Contracts and Agreements: Provide written employment contracts outlining job duties, pay, working hours, and employee rights.
• Employee Rights: Ensure contracts include information on leave, sick pay, and termination procedures
• Health and Safety: Prioritize workplace health and safety, conducting risk assessments and providing necessary training.
• Health and Safety Authority of Ireland: Utilize resources from the Health and Safety Authority of Ireland for guidance and training.

Set Up a Business Bank Account

Establishing a dedicated business bank account is essential for financial management.

• Choose a Bank: Select a bank that offers services tailored to your business needs.
• Separate Finances: Keep personal and business finances separate for clarity and tax purposes

Adhere to Data Protection Laws

Comply with data protection laws, particularly the General Data Protection Regulation (GDPR), if you handle personal data.

• Consent: Obtain clear consent before using personal data.
• Data Minimization: Collect only the data necessary for the intended purpose.
• Security: Implement robust security measures to protect data.
• Data Subject Rights: Allow individuals to access and request the deletion of their data.

Seek Professional Advice from our team of business Start Up Solicitors

Throughout the process, seek advice from legal, tax, and accounting professionals.

• Legal Advice: Engage one of the solicitors from the specialised start up team at Sherwin O’ Riordan to review contracts and ensure compliance.
• Accountant: Hire an accountant to handle financial compliance, including VAT returns, CRO returns, and tax returns.

Above All – Protect your equity

• Avoid Disputes Ensure you have responsibilities and obligations of all founders and partners clearly stated.
• Agreements: Make sure you have formal agreements (shareholders agreement for example) which clearly states the agreement between all Founders – contact us for a shareholder checklist to help you consider the terms of the agreement.
• Avoid costly mistakes: Do not give away shares in your business in return for services. It’s an easy mistake to make and one that can cost you in the long run.
• Do not give away equity: to employees or investors without consulting one of our team or an accountant with experience in start ups. We see it time and time again, where too much equity, is given away too soon.

The legal side of things is important to keep in mind. It makes sure your business is compliant and not taking risks with business basics like safety.

Contact our Startup Business Solicitors in Dublin, Kildare, Wicklow & Nationwide – 01 663 2000

Contact us today through our online contact form.