Business Name or Limited Company?
Quick answer
For a sole trader, a registered business name is just a trading name: you and the business remain the same legal person, with unlimited personal liability. A limited company is a separate legal person, so your liability is generally limited, but it has more filings each year. Many people start as sole traders and incorporate as the business grows.
The key differences
| Sole trader with a business name | Limited company | |
|---|---|---|
| Legal status | You and the business are the same person | A separate legal person |
| Liability for debts | Unlimited: your personal assets are at risk | Generally limited to what you've put in, unless you give personal guarantees |
| Tax on profits | Income tax, USC and PRSI as your own income | Corporation tax on company profits; you pay income tax on what you take out |
| Name on the register | No exclusive right; others can register the same business name | No other company can be registered with the same name, but that isn't trade mark protection |
| Yearly filings | Your own tax return | Annual return and accounts with the CRO, corporation tax return, RBO |
Starting out as a sole trader?
Register a nameBusiness name €49.99 + VAT, with income tax registration (€149.99) and VAT registration (€199.99) as add-ons.
When a company makes sense
- The business takes on contracts, staff or premises where something could go badly wrong.
- Profits are high enough that corporation tax and planned drawings beat income tax.
- Investors or partners want shares.
Tax depends on your circumstances; talk to an accountant before choosing on tax grounds.
Sources
Last checked 14 November 2026 against the Registration of Business Names Act 1963 and Companies Registration Office (CRO) guidance. This is general information, not legal or tax advice for your company.