In recent years the concept of the use of a service company in respect of supporting the day to day practice of legal firms has become very topical. This has been primarily driven by factors such as taxation, debt restructuring, practice property acquisition and pension planning. 

Incorporating a service company for a legal firm requires:-
•    Careful assessment as to the appropriateness of same
•    Clear understanding of the nature and type of services that can be provided 
•    Documented service level agreements
•    Impact on cash flow 
•    impact on existing structures, personal taxation, and pension planning

Assuming the decision is made to proceed with incorporation the implementation phase will define the effectiveness of the new structure going forward. Key aspects of this phase include:-
•    Setting up a new company
•    Formulating an appropriate margin to apply on services to be provided 
•    Nature and type of support services to be provided 
•    Tax registration 
•    Employee matters 
•    New banking facilities to include overdraft & security considerations 
•    Potential VAT/PAYE grouping for cash flow management purposes
•    Preliminary Tax requirements of Directors from incorporation date  
•    Directors salary
•    Company filing deadlines for CRO and Corporation Tax 

Moore Stephens has a dedicated legal department specialising in the requirements of legal firms and has extensive experience in the area of service companies.

Should the area of incorporating a service company be a matter which your legal firm is considering presently, Brian Kearney would be happy to offer you a non committed, one to one consultation to explore same with you.


Team:    
Brian Kearney - brian.kearney@moorestephens.ie  
Diarmuid O' Connell - diarmuid.oconnell@moorestephens.ie
Trevor Leacy - trevor.leacy@moorestephens.ie
Eoin Lehane - eoin.lehane@moorestephens.ie 
Damian Counihan - damian.counihan@moorestephens.ie