Sole trader or limited company? The honest answer for 2026
The threshold where a company starts to make sense, and the admin it brings with it.
The honest answer for most people earning under about €60,000 a year: stay a sole trader. One tax return, no CRO, no company accounts, and you can still claim your expenses.
When a company starts to make sense
Roughly above that figure, or when you want to leave profit in the business, a limited company's 12.5% corporation tax rate starts to matter. It also matters if you're contracting through an agency that insists on it, or if limited liability genuinely protects you.
What a company costs you
Company accounts and an annual return to the CRO every year, a director's payroll, a separate corporation tax return, and your own personal return on top. That's why our contractor package costs more than the sole trader one — it is more work.
Our usual advice: if you're under the threshold and not being told to incorporate, don't. If you're over it, we'll run both numbers on the call.