Open the Door to your new Home – Help to Buy Scheme

Open the Door to your new home –
Help to Buy SchemeOPEN dOORS

If a HTB applicant is self-building a house, his or her solicitor must verify the claim. Solicitors must first apply to Revenue to be a registered solicitor for the HTB incentive.
Neil J. Butler & Co. Solicitors are Registered for this Scheme.
The Help to Buy (HTB) incentive is a scheme for first-time property buyers. If you are a first-time buyer, it will help you with the deposit you need to buy or build a new house or apartment. You must buy or build the property to live in as your home.
When you buy or build your home, the incentive will give you a refund of Income Tax and Deposit Interest Retention Tax (DIRT) that you paid in Ireland over the previous four years.
let’s look at how it works…..

Who can claim the Help to Buy (HTB) incentive?

To claim HTB, you must:
be a first-time buyer
buy or build a new property between 19 July 2016 and 31 December 2019
live in the property as your main home for five years after you buy or build it
be tax compliant, if you are self assessed you must also have tax clearance.
To qualify, you must not have previously bought or built a house or apartment, either on your own or jointly with any other person. If you are buying or building the new property with other people, they must also be first-time buyers.
If you are buying the property, you must have signed a contract to buy that property on or after 19 July 2016. If you are self-building, you must have drawn down the first part of the mortgage on or after that date.
Approved developers and contractors
The contractor you are purchasing your home from must be approved by Revenue. You can check the list of approved developers and contractors to make sure that your developer or contractor is approved.

What type of property qualifies?

To qualify for HTB, the property that you build or buy must be:
your home
newly built with the construction subject to Value Added Tax (VAT) in Ireland.
The property must never have been used, or have been suitable to use, as a residential home. If the property was non-residential, but has been converted for residential use, it may qualify for HTB. If you buy or build the property as an investment, it does not qualify for HTB.
Purchase value
The purchase value of a new build means the price that you bought it for. For self-built property, the purchase value is the approved valuation by the lender at the time that you took out the mortgage.
If you bought the property between 19 July 2016 and 31 December 2016, the purchase price must be €600,000 or less. If you bought it after 1 January 2017, it must be €500,000 or less.
Mortgage
You must take out your mortgage on the property with a qualifying lender. This loan must be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property. This is known as the loan to value ratio.
You are allowed to have a guarantor on the loan.

How much can you claim?

The amount that you can claim is the lesser of:
€20,000
 OR 5% of the purchase price of a new home. For self-builds this is 5% of the completion value of the property
the amount of Income Tax and Deposit Interest Retention Tax (DIRT) you have paid in the four years before your purchase or self-build.
The maximum payment is €20,000 per property. This cap applies regardless of how many people enter into a contract to buy a house.
Universal Social Charge (USC) or Pay Related Social Insurance (PRSI) are not taken into account when calculating how much you can claim.
How will the refund be paid?
If you bought or built the property between 19 July 2016 and 31 December 2016, the refund will be paid directly to you.
If you buy a new build after 1 January 2017, the refund will be paid to the contractor.
If you self-build the property after 1 January 2017, the refund will be paid to the bank account of your loan provider.

What do you need to do before you apply?

Before you apply, you must be registered for either:
myAccount, if you are an employee and pay tax through PAYE
Revenue’s Online Service (ROS), if you are self-employed.
Four year rule
You may have signed your contract to buy a new build or drew down the first part of your mortgage for a self build between 1 January and 31 March 2017. If so, you may select the year of purchase to be the actual year you bought or built your home or the previous year provided you make your application before 31 May 2017. This will allow you to select the four year period which is of most benefit to you.
For example, if your contract or draw-down date is 2 February 2017, you may choose whether that took place in either 2016 or 2017. If you choose 2016, this will allow you to use your Income Tax and DIRT for the four years from 2012 to 2015. If you choose 2017, you can use the years from 2013 to 2016.

How do you apply for Help to Buy (HTB)

Use myAccount or Revenue Online Service (ROS) to apply for HTB online.
There are two stages to the online process:
the application stage
the claim stage.
Application stage
You can apply as an individual, or as part of a group if you are buying or building with other people. You must complete a declaration and select the years you want to use for a refund. If you are tax compliant, your application will be approved and you will be provided with an application number and a summary of the maximum amount you can claim. You will also be given an access code separately through MyEnquiries.
Keep a safe note of both of these codes as you will need to provide them to your lender. If you are buying your home you will also need these codes for your qualifying contractor. If you are self-building you will need these codes for your solicitor. Your contractor or solicitor will require this information to verify what you have submitted.
Claim stage
Once you have signed the contract for your home, or drawn down the first part of the mortgage if you are self building, you can make your claim. Login to HTB through myAccount or Revenue Online Service (ROS) and complete the steps .
If you are applying with other people you will also need to confirm the portion of the refund to be refunded to each person. If you are self-building, you will need to provide the BIC and IBAN of the loan bank account.
Once you have submitted your claim you will be provided with a claim reference.

Once you have submitted your claim you should advise your developer or contractor (or solicitor if you are self-building).
Provide them with your claim reference (issued to you after step 2) and access code (issued to you when you submitted your application). Before you receive any refund, the information you have provided will need to be verified by the:
developer or contractor, in the case of a new build
solicitor acting on your behalf, in the case of a self-build.
The refund that you finally receive is limited to 5% of the purchase price of the house. This may mean that it is different to the maximum relief amount that you were given at application stage.

 

10 ESSENTIALS WHEN BUYING A PROPERTY USING A MORTGAGE

The initial excitement of getting your Loan Offer can often be quickly diluted when apparent obstacles are put in your way by the mortgage process. Avoid the problems – follow our Guide.

 

When we as your solicitor get the Loan Offer, we can deal with the legal conditions but there are often items that must be dealt with by you and the Bank.  Until those are dealt with, the Bank will not process further even if our legal requirements are fully dealt with.

 

Bear in mind the following:-

1.A Valuation Report is needed by the Bank –

    •  Identify the agreed Valuer (the Bank usually have a panel);
    •  Know the cost involved;
    •  Make the arrangement to inspect with the help of the Auctioneer.

2.Life Insurance cover is generally required.

    • BUT,  you don’t have to take any package that is offered by the Bank.
    •  You can often find a more competitive quotation in the general market or particularly from a professional brokerage firm.
    •   Do your research early so that you don’t run out of time.
    •   Making a phone call or filling out a proposal form is not enough – the policy must be in place and the interest of the Bank must be noted on it.

3. Household insurance, particularly fire cover.

    • Do your research early to get a price that is acceptable to you.
    • Compare to the price offered by  the Bank.
    • The name of the Bank must be noted on the fire policy
    • Get the letter of cover required by the Bank.

4. Accurate address of the property – we regularly see a difference between the auctioneer’s description of the address, the one used in the loan offer (which is often the one given by you to the Bank) and the actual legal address when the title deeds reach us.  That can cause untold delays because the Bank may take the view that it is a different property.

5. Accurate names of you the borrowers – You must use a consistent form of your name.  You should decide on the format you want to use on your legal title and on your loan papers and you should stick to the one format at all times.  Otherwise questions and delays will occur.

6. Lifetime of Loan Offer. Be aware that most loan offers now have a life time of only three months.  If you have to gather the information we are describing here you can quickly run out of time which will force you to reapply, incurring further delay and expense.

7. A structural survey – we always recommend this.  It is not a strict requirement of the Bank, but it is very wise that you protect yourself by having a proper survey done by a fully qualified and insured person.

8. Be certain that you have access to any further funds that are needed.  The loan will only be part of the purchase price.  The deposit and any balance together with the stamp duty, registration fees and legal costs must come from your resources.  Have them available at an early stage.

9. If you are receiving money support to buy the house from a member of family, then we as your solicitors must know that early.  Further documents are needed to be prepared and signed by the person making the gift.  This can be another source of delay.

10. Finally, your expectations need to be managed and we can help you do that when you contact us early in the process.  We can then try to minimise further unnecessary delay but of course we are all subject to the internal workings of the Banks and it is sometimes hard to understand the bureaucracy that they apply.

 

Property Bargains – are they real?

imagepropertyHave you been tempted trying to buy a property at a repossession- type auction?

 

Have you thought about what makes these auctions different – apart from an expectation that prices will be lower?

 

There are certain key differences that must be clearly understood if you are to avoid significant problems for yourself when buying in this kind of environment.

 

Who is  the Seller?

One of the key issues is who in fact will act as seller. Is it the Bank that holds the mortgage or is it a receiver?

If  it is a receiver then that person acts as agent of the legal owner. The receiver, as agent of the legal owner has more limited powers than the bank acting under it’s mortgage.

For instance, if there is a judgement against the property apart from the mortgage held by the bank who appointed the receiver, the receiver has no power to avoid the effect of that other judgement. In those circumstances, you run the risk of buying a property that is still affected by another judgement.

 

On the other hand, if the bank that holds the mortgage acts as seller, then that bank under statutory powers, can effectively prevent the sale of property being affected by any other judgement.

 

Risks – the Contract

 

The standard Contract for Sale which is recommended for use by the Law Society of Ireland will be very substantially changed  to render it more favourable to the seller. In particular, the usual warranties that a seller is required to give to a buyer are likely to be be deleted. This is because most Receivers don’t have any detailed knowledge of the property involved and will not incur the cost of obtaining it.

 

As you can imagine, the Law Society and its member solicitors, over many years,developed a standard Contract for Sale in a format that tried to provide fairness to both sides. To substantially change the standard Contract by deleting clauses that are designed to achieve that fairness means that you as a buyer are far more exposed to risk.

 

Because very few standard warranties are being given, the old adage of “Buyer beware” becomes very important. The burden falls to you as the buyer to make a very full enquiry about the property – planning, access, drainage, condition, relations with neighbours etc.

 

Risks – early commitment

The very fact of buying at auction means that you must ,if successful , sign a Contract and pay a deposit there and then. That gives you no opportunity to have your solicitor investigate the title or the conditions of sale with a view to giving you clear advice as to the risk involved.

 

Quite often, solicitors will be consulted by clients after such an auction when the client feels he has achieved a bargain price. However it can off  become apparent  very quickly that if it looked to good to be true, it is in  fact too good to be true! You as buyer can find yourself with some serious problems.

 

Help Yourself!

 

Hopefully you can now see how important it is that you choose the correct solicitor to handle this type of transaction for you. Previous experience and knowledge of debt management, enforcement and the technical rules about buying from receivers or banks, is an essential skill. We at Neil J. Butler & Co. have been doing this type of work for approximately 30 years and have developed the expertise to protect you.

 

There are bargains but they need  to be well managed.

 

Help yourself to bag that bargain by having us on your side !

 

Contact us on

0504-24173 ; neil@njbutler.ie ; www.njbutler.ie

 

 

EU rules on inheritances Change from 17 August 2015

New EU rules on inheritances.

The EU  Rules relating to how assets located abroad of people who die after 17 August 2015 has been updated and for many , improved.
• Citizens of the EU can now choose whether the law applicable to their succession should be that of their last habitual residence or that of their nationality;
• a given succession is treated coherently, by one single court applying one single law;
• parallel proceedings and conflicting judicial decisions are avoided;
• decisions relating to successions given in one EU country are recognised and enforced in other EU countries.

Who does it affect?

If you own property abroad, in an EU country , then you !
Many Irish people have property abroad – in Spain, Portugal, France and the like. Most will recall having to make Wills in the country where the property is located. Local rules might apply a different result in the event of a death than would happen under the person’s Irish Will. It has lead to added cost, difficulties at what is already a distressing time and so on. These new Rules can help clarify , unify and ease the administration of affairs after a death. In that sense ,they are to be welcomed. However , they are not without some added risk , if appropriate advice is not taken.

What do you do now?

If you have such property, then you still need a Will in the local country. But you should now seek advice as to whether it should be updated to declare that Irish Law should apply instead of the local law. You should also update your Irish Will as many current Wills have deliberately omitted dealing with the foreign premises to date.
It is VITAL , however that tax advice be also obtained – you might unwittingly solve one problem , only to create another and perhaps far more expensive one !.
If you have EU- based property outside Ireland, contact us for further help.
Neil J. Butler & Co.
Solicitors. 00353 504 24173 neil@njbutler.ie

What Happens your Social Media files if you die?

Have you thought about what happens all your online info, photos, blogs if you die or are disabled?

Can your Loved ones access your Social Media files?

Do you want them to ?

Is your business website, Facebook page, Google + Page, Twitter account ; Linkedin Page available to those who will run your business?

These and many other very important questions have come to mind this week , after I came across a newspaper Article on  the subject.

image re dead socialThe Article is linked here – my thanks  to Marie Boran

It’s very thought-provoking  and as a Lawyer , I need  to address this in the context  of  the service I provide my clients.

But people can help themselves before  they come to see me or my colleagues – think about  the issue  and prepare !

What Can you  do with your online life if you die?

The first thing is to look at the settings page in each of  the Social Media platforms you use – is  there an option to manage an account if it is inactive ?

Check Google’s system – it allows you to name  people who will be notified by Google if your account has been inactive  for a set period – you decide but  the minimum is 3 months- and those people are given options by you to access  and download your info OR to simply delete it. You can also tell Google  to delete it after a time.

The Article refers  to a great Site – Deadsocial.org – try  the Resource page.

I’ll be looking  at this in greater detail on my website , so come back and let’s work through this together !!

Is it easy to Change Solicitors in a Personal Injury Claim?

 Having Issues with your Current Solicitor about your Injury Claim?

Financial adviser or business mentor help team partner up to pro

Can you change Solicitors? YES!

Always remember  that you are  the client and that you are entitled to have control over who represents you.

There can be many reasons why you might be worried about your Claim and the way it is being handled.

It often comes down to poor communication by the Solicitor involved.

What Do You Do to make the Change?

If you have worries , then the first  thing you should  do is make an appointment to see the person ; then prepare the questions that you want answered  and ask them.

If you do not get  that chance or you don’t feel that the answers are satisfactory , then you should think about getting advice from another Solicitor.

How do I find a new Solicitor for my Injury Claim?

I have already posted some information about choosing a Solicitor – have a look at it here.

If you want a different Solicitor to handle your claim , then once you have agreed terms with the new person, he/ she can write  to the first Solicitor with a form of Authority signed by you.

The Law Society has set out Rules  that Solicitors must stick to in this situation.If there is a continuing problem , you may have  an option of going to them  for further help. Have a look at their website on www.lawsociety.ie

Will it cost me to Change Solicitors?

You need to understand however  that if  the first Solicitor has done work on  the file  and if he/ she has spent money on your behalf on , say , Court Stamp Duty, Medical Reports  and such like , then those monies or outlays usually have to be paid  to the first solicitor before  the file is transferred. But remember, if the Claim is successful , then these costs should be recovered from the Defendant in your Claim.

In regard  to the Professional Fees due  to the first Solicitor, it depends on the initial agreement between you  and him – was it a “no foal, no fee arrangement” ; was it on the basis  that you would be charged  for time applied or was there some other arrangement?

Often the two Offices agree  that once  the Claim is finished , they would agree a division of the fees based on the work each Firm did. It is often best to get professional advice on this from a Cost Accountant , trained in measuring legal Costs  – your new Solicitor can guide you  with that.

So while  there may be some expense to be paid, most of it should be refunded to you at  the end of the Claim. You must also decide if it is worse to continue with worries about  the person who is handling the Claim for you , or to take control again and ensure you get quality service and advice to bring what is always a stressful experience to a finish as soon as you reasonably can.

We at Neil J. Butler & Co. have  many years in handling client affairs . We also have good relations with our colleagues – we believe  that we can manage any change such as described here in a way  that will minimise disruption and achieve a great result for you !

Contact us today

Our  Solicitors want to get to know you ; to support your legal needs, keeping you updated at each stage so that you feel you are served by a professional, efficient and customer-oriented Firm.

We do not charge for initial enquiries so please get in touch….

Complete our Free Enquiry Form , email neil@njbutler.ie or call on 0504-24173

 

 

Business Start-up Agreement

http://www.dreamstime.com/royalty-free-stock-photo-business-start-up-infographics-template-vector-scheme-humans-icons-gears-image45245595

15 essential questions for a Business Start-up Agreement  

By Neil Butler , Solicitor, Thurles

You and some colleagues have come up with a great idea for a Business Start-up, right?

You’ve spent hours planning and refining it and are almost ready  to launch, yes?

Have you thought about a Business Start-up Agreement?

Consider these questions:-

  1. Is it to be a Company? Understand why a Company might suit – look at my note here for further info
  2. Who gets what percentage of the company or business shares?
  3. Is the share ownership  based on money introduced?
  4. What assets or cash does each Subscriber contribute or invest?
  5. Does the number of shares held by people increase  based on continued participation in the business over a stated period of time?
  6. What are the roles and responsibilities of the each of you and your colleagues as Subscribers?
  7. If one Subscriber leaves or dies, does the Company or the other Subscribers have the right to buy back that person’s shares? At what price?
  8. How much time commitment to the business is expected of each Subscriber?
  9. What roles are filled by whom?
  10. What salaries (if any), are the people entitled to?
  11. How are decisions of the business to be made? (majority vote, unanimous vote, or certain decisions solely in the hands of one person doing the day to day operation?)
  12. Under what circumstances can a Subscriber be removed as an employee of the business? (usually, this would be a Board decision)
  13. How will a sale of the business be decided, should such an opportunity arise?
  14. What happens if one Subscriber is’nt doing what was promised under the Shareholder’s agreement? How is it resolved?
  15. Are there to be Bank Borrowings – what security is to be provided and what personal risk attaches for each Subscriber?


Don’t leave these things on the long finger – ask for our help today and let’s clear your thinking!

 

Successful Business Start-up

10 Tips for Successful Business Start-up

Neil J. Butler, Solicitor, Thurles

business start up

  1. Does everyone involved understand the Agreement?

If you are the only person involved in the Project , then skip this.

BUT if you want a successful business start-up with one or more colleagues, then everyone must agree and accept  the terms of the Project.

Some very important questions need to be asked and answered to arrive at clear Terms.

Have a look here  at my suggestions for those questions.

Those terms should be written into a document – let’s call it a Subscribers Agreement, where the Subscribers are you  and your colleagues who want to go into business together.

In Company Law it is also referred to as a Shareholders Agreement.

Any group of people who are serious about having a Successful Business Start-up, must start with this.

  1. Should we form a Company for our new Business Start-up?

Subscribers often start a business without consulting a Solicitor and, as a result, often incur higher taxes and become subject to significant liabilities that could have been avoided if the business was started as a limited liability company.

The Companies Registration Office in Dublin (the CRO)  oversees the formation and ongoing filing of records by  Irish Companies. The Office of the Director of Corporate Enforcement has a separate role to play –  enforcing compliance with the Companies Acts.

The new Companies Act 2014 is likely to be commenced in June 2015 – it brings very significant changes to the duties, obligations  and liabilities of Company Officers and Promoters/ Subscribers. It is essential  that anyone setting up a Company or indeed currently involved in one, have a clear understanding  of those changes. We at Neil J. Butler & Co. can help you with this, so get in touch !

A Company is formed by filing Statutory documents with the CRO. The costs for forming and operating a Company are often greater than for partnerships and sole traders due to legal, tax, and accounting issues.

However, a Company generally offers significant advantages for Subscribers (and subsequent investors) including, significant liability protection from business creditors, tax savings through deductions and corporate reliefs and depending on the sector, greater ease in raising capital.It can also allow an easier means of handing on the business to the next generation.

Of course Sole Traders and Partnerships can later convert to a Company but costs in doing so can be significant.

For more on Sole Traders, see my Note here.

For more on Partnerships , see my Note here.

There are, however, significant tax implications when an owner might want to draw some wealth out of the Company, if the Company has traded successfully for a time.

In the same way as good ongoing legal advice is essential to any business, so too is quality tax and accounting advice.

  1. T & C’s – beloved of Lawyers but essential for Successful Business Start-up

Whether in retail, manufacturing or Services, every business  that provides something to a customer for payment should have a standard  set of Terms and Conditions , otherwise called a Contract. It si no different  for a business start-up.

“Standard”  may be misleading – it should be the terms that your business works to, for each item of business it transacts. Those terms will not be the same  for another type of business  or even  for the same type of business carried on by a competitor. But they are standard for you.

You can help yourself here– get sample contracts of what other people do in your industry. Use it as a place to start and then consider what specific things you want to cover.

Examples are :-

  • clearly spelled out pricing,
  • when payment is due,
  • what penalties or interest is owed if payment isn’t made.
  • limit or minimize any representations and warranties about the product or service
  • include limitations on your liability if the product or service doesn’t meet expectations.
  • Include a “force majeure” clause relieving you from breach if unforeseen events occur
  • state how disputes will be resolved – arbitration and/or mediation
  • state the  location of the Courts that are to have jurisdiction over any disputes- presumably those in Ireland

Make sure you have an experienced Business Law Solicitor to review and finalise it – it must comply with Irish and European Law.

We at Neil J. Butler & Co. Solicitors can help…..

  1. Answer the hard questions NOW

What happens when one of the Subscribers/ partners wants to exit from the Business Start-up?

What do they get, and under what terms?

What happens if a Subscriber/ partner dies? If their ownership interest goes to a spouse, does the spouse have a say in management decisions?

I know these questions can be awkward but it’s much easier to address these up front than it is when you’re ( hopefully) making lots of money or worse, trying to find a way to survive. Get it on paper in the beginning.

[The essential Questions to be asked are in my Note here]

  1. Sort the Backoffice – organise your records

Business breeds paper and records. It’s expensive to manage  and to store. Decide to keep as much as possible in digital format. Use  Web services like Google Apps.

Every Business Start-up needs to put effort into this aspect – once done it becomes much easier.

Get all the important documents in one place early –

  • Terms and Conditions; premises lease;
  • Tax files and templates  for Reports;
  • Policies for Internet use by employees , email use, use of Company phones; claiming expenses; sick leave ;
  • disciplinary codes and procedures ;
  • employment contracts,
  • Finance and Loan Offer letters,
  • Safety Statements, Risk Assessments etc.

Taking the time to get your paperwork in order now, at the start,  will help your efficiencies as you grow, will make it easier to integrate new staff, make you more attractive to Lenders and possible buyers and will also help defend you from legal attack, should it happen. It is key to having a Successful Business Start-up!

  1. Trademarks Traps

It’d be pretty awful if, after a few years of really hard work, just when your business was doing really well, you get sued by someone who claims you are using a form of their name or product name.

You might be forced to change the name of your key product or even the entire business – and to pay compensation!

Investigate , research , claim your own copyright in a logo/ brand; apply for your own trademark, if applicable. Give your Business Start-up every chance to succeed !

Get Legal Advice early !

   7.  Get a Proper e-mail address

A detail like your new business operating under a free email address from Hotmail, Yahoo, Sky etc. can damage the credibility of that business HUGELY. It is not businesslike!

Interestingly, Google’s Gmail is considered acceptable these days, given the huge investment they have made to encourage business use through it’s Apps for Business; Google Adwords, Communities and Google +.

If you have a website (you do, don’t you?), it’s easy to set up an email address with that domain, and doing so will bring a much needed level of credibility to your business.

Otherwise it is easy and inexpensive to register ownership of your own web name or Domain name.

  1. Use a quality email signature.

List your name, title and contact information in your email signature.

Your company logo, if used properly, can be okay too.

Try a picture of your actual signature, to personalise it.

Don’t be tempted to use HUGE fonts / multiple colours/ silly pics/ emoticons – not professional!

  1. A good website.

Anyone you’re hoping to do business with is going to look for your website, and what they see is a reflection of you and your business.This is especially true when you are promoting a Business Start-up.

With services like WordPress and thousands of quality templates available at low or no cost, there really is no reason why you should not have a good web presence.

   10. Have you thought about Intellectual Property Rights?

There is an expanding area of Law dealing with the protection of original ideas, thoughts creations and expression.

Even as you and your colleagues and friends are chatting about your new idea for a business, you are refining it and developing it. But who owns the idea? Who owns the design of the product  that comes from the idea? Who owns  the brand name you choose; the logo you adopt or design?

How do you get protection  for that idea, that design, that product?

How do you ensure  that your Business Start-up has ownership  and control?

Once you form a business entity, that Company  or Partnership doesn’t own that IP unless you get it into the entity. You get it in by licensing it or by completing an Assignment agreement. Anyone with whom you collaborated,or who contributed to the idea, design etc. needs to get assigned into this entity, to ensure there is no doubt later nor any obstacle to future sales and profits.

Again, expert legal advice will pay for itself in the protection  that can be arranged.

 

Partnerships

Partnerships – the essentials for Business Start-ups

business 6

By Neil Butler, Solicitor , Thurles

A Partnership is where two or more people come together in business , with the common aim of making a profit.

It does not  need to have a document in writing setting out the terms agreed between everyone – the Partnership Act governs things and even implies certain formal Terms , unless they are excluded by a written document signed by the Parties.

Not all of these implied Terms might suit your arrangement and can even cause trouble for the business.

So, it is very important that you and your partners get legal advice at an early stage.

Such advice will likely result in the completion of a formal Partnership Agreement. It will address many issues – very similar in fact  to those for a new Company.

Examples of the questions to be answered are :

  • Who gets what percentage of the company or business shares?
  • Is the share ownership  based on money introduced?
  • What assets or cash does each Subscriber contribute or invest?
  • Does the number of shares held by people increase  based on continued participation in the business over a stated period of time?
  • What are the roles and responsibilities of the each of you and your colleagues as Subscribers?
  • If one Subscriber leaves or dies, does the Company or the other Subscribers have the right to buy back that person’s shares? At what price?


One of the key elements of a Partnership is  that ALL partners are jointly and severally liable for the acts of the others. For example, the business has a bank loan of €10,000 ; each Partner is liable  for the entire 10k and not just a share of it.

The same applies to all Contracts entered into by the Partnership.

So it is very important  that there are clear rules agreed about who in fact can bind the business to expense; to delivery dates; to priority in delivery etc.

Unlike with a Company , liability in a Partnership is unlimited as it is with a Sole Trader.

 

 

Sole Trader – the essentials for Business Start-ups

Sole Trader – the essentials for Business Start-ups

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 by Neil Butler , Solicitor, Thurles

Not every business is suited to operation within a Company.

It might be judged too costly to set up a Company ; you might want to prove the business can survive first; or you might be simply going into business for yourself in a small way with the least complication.

A Sole Trader is just that – somebody trading in business as a sole owner.

It does not mean that you cannot have employees. You can, but the ownership is held only by you personally.

You employ people to do work , pay them a wage but they have no share in the business.

A Sole Trader is personally responsible  for all decisions; for all purchases and sales; for all tax liabilities; for all obligations under the Consumer Codes;

for compliance with the laws  that affect the particular business.

But a Sole Trader is also entitled to all the profits and does not have to ask anyone’s permission when making any decision.

It can be a very fulfilling place to be when things go well but a lonely place if challenges become tough.

Just because operating as a Sole Trader seems simpler does not mean  that you should not ensure you protect yourself as best you can.

Get good legal advice

  • about Employment Law;
  • about Contract Terms in your business;
  • about Franchise or Distribution Agreements ;
  • about the types of insurance you should take out;
  • about the Policies you should have in place in the workplace;
  • about Privacy Law as it affects your business and
  • about methods of financing.

Check out our other Posts on Starting your own Business on www.njbutler.ie

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