How each structure is taxed
A sole trader and the business are the same person. Trading profit is taxed on you through Income Tax, USC and Class S PRSI, which is what the calculator above estimates, including pension relief.
A limited company is a separate legal entity. It pays corporation tax on its profits, and you are taxed again on what you take out as salary or dividends. Dividends can carry withholding tax.
Run the company side separately
Use the corporation tax calculator for company profit, and the dividend withholding calculator for money taken as dividends. Salary through payroll can be tested in the salary calculator. Put the same profit into each so the comparison is yours, not ours.
What the figures leave out
Accountancy and filing costs, director's pension strategy, loan arrangements, VAT registration, liability protection and funding all affect the decision and are not modelled. Speak to an accountant before changing structure.
Common questions
Is a limited company always cheaper?
No. It depends on profit, how much you draw and extra costs. Run your own figures through each calculator.
Does Count.ie recommend a structure?
No. It shows each side's estimate and does not claim a combined result.