Forti Ltd. · Free Calculator

Sole Trader vs. Limited Company Calculator

Compare take-home outcomes at your profit level — assuming you extract all profit as salary or dividend this year.

Sole Trader

Business profit€0 Income tax€0 USC€0 PRSI (Class S)€0

Net in your pocket€0

Limited Company

Business profit€0 Salary + employer PRSI€0 Corporation Tax (12.5%)€0 Tax on salary (income tax+USC+PRSI)€0 Tax on dividend (income tax+USC+Class S)€0

Net in your pocket€0
Why this comparison isn't the whole story
This models extracting all profit in a single year — salary plus a full dividend for the Ltd company scenario. It's illustrative, not a recommendation. In practice, a limited company's real advantage usually comes from not extracting everything immediately: retaining profit at the 12.5% CT rate, timing dividends across lower-income years, pension contributions (fully deductible for the company, no BIK), and potential Section 486C start-up relief in the first 5 years. As a proprietary director (owning/controlling 15%+ of the company), you're liable for Class S PRSI on dividend income from your own company — this calculator includes that, which many simpler comparisons miss. Dividend Withholding Tax (25%) is not a separate tax; it's a payment on account of your income tax liability and is included in "tax on dividend" above, not added on top.

This calculator is provided for general guidance only and does not constitute tax advice. It's a simplified, single-year "extract everything" comparison and doesn't model retained profits, pension contributions, or multi-year tax planning — all of which usually change the answer. Speak to your accountant before deciding on a business structure.

Deciding between sole trader and limited company?

Forti Ltd. advises Irish founders on structure, incorporation and ongoing compliance either way.

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