Can You Be Employed and Run a Sole Trader Business in Ireland? Yes, and Here's How

Last Updated: October 9, 2024

Yes, you can be employed and run a sole trader business in Ireland! Here’s what you need to know:

1. How to Get Started

To legally operate as a sole trader in Ireland while being employed, follow these steps:

  • Register for Income Tax: Before you start your business, it's essential to register under the Revenue Online Service (ROS). You must register here if you want to become a sole trader. You can log in or sign up for ROS here.
  • Register Your Business Name: Next, sign up with the Companies Registration Office (CRO) and pay a €20 fee. This gives your business a legal identity and provides you with a Certificate of Registration, which is important for opening a business bank account.
  • Income Threshold for Tax Registration: If your income exceeds €5,000, you must register for income tax through Revenue.ie. Log in to "MyAccount," click on "Manage My Records," and select "Income Tax." You must only register for income tax once your earnings cross this threshold.

For a detailed guide on the steps to register as a sole trader in Ireland, you can visit this link: How to Register as a Sole Trader in Ireland.

2. Open a Business Bank Account

You can open a separate business bank account with your Certificate of Registration from the CRO. This keeps your business finances distinct from yours, making tracking income and expenses easier.

3. Flexibility in Work

As a sole trader, you have the flexibility to choose your working hours and clients. You can work full-time or part-time and take on freelance projects, allowing you to customize your work-life balance. Importantly, you can also work as an employee while operating as a sole trader, enabling you to earn a stable income alongside your self-employment.

4. Manage Your Own Finances

You don’t need an accountant to manage your finances as a sole trader. By keeping accurate records of your income and expenses, you can file your own taxes. If your income exceeds €5,000, ensure you register for income tax on Revenue.ie.