Things to Keep In Mind Before You Start A Small Business in Australia

Posted by Accountant Perth on October 19th, 2021

Amidst the excitement of starting a business, it’s easy to come overwhelmed by the number of effects that you have to do. Whether you’re just starting to turn your hobby into a business, or are spanning up your great idea, there are some effects you need to do to set your business up duly.

If you’re not sure where to start, here are few tips for setting up your business.

1. Decide on your business structure

   How you set up your business can affect how you cover your means, how you\'re tested and the position of control you have. The most common business structures are:

• Sole trader 

  This is easy to set up and gives you the flexibility to change your structure as your business becomes more complex. As a sole trader, you’ll bear all the threats of the business, so if the commodity goes wrong the responsibility will fall on you. Tax levied on sole trader structure has different obligations and none need to lodge a sole trader tax return to the ATO.

• Partnership 

  If you’re going into business with between two and 20 people you could form cooperation. It’s fairly affordable to set up cooperation and you partake the threat with your business mates. This means that you may also be responsible for their debts and will need to make business opinions in line with your cooperation agreement.

• Company 

  Numerous small businesses establish themselves as a company. A company is a separate legal reality that can hold means and run the business. It’s possessed by shareholders and run by directors. The cost of setting up a company can be fairly high and there are ongoing reporting scores to ASIC that must be followed. The advantage of a company is that the threat to the shareholders is limited and it’s easy to vendor change the business. Directors are liable for what the company does, which means they may face significant penalties if the company breaches the law.

• Trust

  A trust carries on business through its trustee for the benefit of its heirs. The trustee uses the means of the trust to run the business and distributes gains to the heirs. Setting up a trust can be complicated and precious to manage. As trusts have limited liability they can be an effective way to cover the means of your business. There are also different types of trusts that you can set up (like optional or unit trusts) which affect how income is distributed and who\'s entitled to the means of the business.

1. Get the business licences and enrollments you need

   Anyhow of which type of business structure you have, there will be some business licences and enrollments that you need to apply for. These include:

• Business licences or permits 

  Depending on what type of business you have, your business may be needed to hold a special licence or permit. This may depend on the position you’re working in or the type of business you have. Check with your original council and assiduity organisations to find out what licences and permits your business requirements.

  Australian Business Number (ABN) All businesses are needed to have an ABN. These are free and can be attained relatively fluently online from the Australian Business Register. However, other businesses that pay you may withhold duty at the top borderline rate If your business doesn’t have an ABN. Your ABN should be included in your duty checks and other business documents.

• Register a business name

  If your business has a formal name (like a company name) and a trading name (the name your guests know it as) also you should register the trading name as a business name. If you’re a sole dealer operating under your name also you don’t need to register a business name. You can check and register your business name online. Before you register your business name, it’s also worth checking whether it infringes on another person’s trademark or is analogous to someone differently’s. You can check this at IP Australia.

• Cover your intellectual property

  If your business has unique ideas, trademarks or designs, you may want to register these so that other people can not use them. There are several ways you can cover intellectual property, including. Guarding the original expression of ideas through the brand. See the Australian Copyright Council for ways to do this.

  Registering a trademark, which is a unique way to identify your product or service. It may include your brand totem, expression, or packaging. You can register this with IP Australia. Registering a patent that gives you exclusive rights to commercially exploit your invention. You can do this through IP Australia. Registering a design that includes a shape, configuration or pattern that\'s new and distinctive. You can register this through IP Australia.

   

• Register a domain name

  Utmost businesses have an online presence that\'s generally a website. To have a website you\'ll need to register a sphere name. Immaculately, your sphere name will be analogous to your business name and be easy to remember. You can find an authorised company to register your sphere name through AusRegistry.

• Register social media platforms

  If you want to vend your business through social media, it’s a good idea to set up social media runners or at least reserve your business name. Also, it\'ll be available for you when you’re ready. Decide which social media platforms you may want to vend on and set up an account for your business that’s the same or analogous to your business name.

1. Meet your taxation scores

Everyone who has to pay duty in Australia needs a Duty Train Number (TFN). This is a nine-number issued by the Australian Taxation Office (ATO). The type of TFN your business requirements and how you’re tested will depend on your business structure.

• Sole dealer

  You can use your individual TFN as a sole trader. You won\'t need to pay payroll duty, superannuation guarantee or workers compensation for yourself but you may need to do this if you have any workers. The income you make from your business will go into your particular duty return and your business charges may be deductible.

• Partnership 

  Partnerships have their own TFN and the income and charges are frequently resolve amongst the mates. Each mate also includes their share of the cooperation income in their particular duty return. Mates aren\'t workers so cooperation won\'t be needed to pay payroll duty, superannuation or workers compensation for them.

• Company 

  As a company is a separate legal reality, it has its own TFN and lodges duty returns. It’s also responsible for paying any payroll duty, superannuation guarantee and workers compensation for its workers. The company may also pay out its gains as tips to its shareholders. The shareholders must also regard these tips in their own particular duty returns.

• Trust 

  Trusts must have a TFN and lodge returns but they don’t generally pay duty. The heirs may be needed to pay duty on the distributions they admit in their particular duty returns.

Any business that has a development of further than$ is also needed to register for GST and submit Business Exertion Statements. You also need to register for GST if you want to claim energy duty credits or GST credits.

Still, or if it’s a company, it\'ll also need to register for PAYG, If your business has workers. This means that the business will need to withhold duty and remit it to the ATO on behalf of its workers, directors, officers and conceivably some contractors.

You can apply for a TFN, GST and PAYG together at the Australian Business Register. To register for payroll duty and workers compensation, communicate the applicable profit authority for your state or home.

Setting up a business can be a complicated process, so it’s important to speak to your legal, duty and tax accountant before you begin. If you’d like help setting up your business get in touch with Accountant Perth.