Beginning your own business in Australia can be simple or complicated, depending on how you decide to organize your venture.
Choosing The Right Structure For You
There are four basic designs that you can select from. There are four basic structures that you can choose from
* Sole Trader,
The majority of businesses start as a Sole-Trader or Partnership. As the business expands and expands, some choose to structure by the formation of the form of a Company. Trusts aren’t a very frequent legal entity, and it’s uncommon for a business owner would establish a Trust at the beginning of their business.
No matter what type of business you decide to use, the first step you have to do is request your Australian Business Number, or ABN as it is popularly known. Making an application to get an ABN is easy and free. It is done in just 10 minutes through the Australian Securities and Investment Commission website.
Suppose you plan to trade under a name for a business like Jim Brown’s Pizza Palace. You need to apply for registration with ASIC too. As of the date at the time of writing, the cost includes GST at $30 for a year or $70 plus GST over three years.
Australia in Australia, if you do not provide an ABN and other businesses don’t have one, they typically won’t engage with your company. If you are applying for an ABN, it is important to be aware of whether you have to have a GST registration. GST. If your annual revenue is expected to be greater than $75,000, registration for GST becomes mandatory. If your revenue is less than $75,000, registration, in the majority of cases, is not necessary. The majority of new businesses opt to file and pay their GST on the basis of quarterly.
GST: Exceptions To The Rule
* If you own taxis or hire a vehicle, you are required to register to pay GST regardless of the amount you earn.
* If you are an organization that is not a profit-making one, GST registration isn’t necessary until you achieve at least $150,000 in revenue or more.
Getting The Right Business Advice
Before you begin your venture, It is advisable to seek guidance from a professional, such as the accountant of your choice or a financial consultant. But, it can cost you money.
In Australia, the country, low or free cost assistance is offered by:
BECs (found all over the nation)
The Australian Taxation Office (ATO)
Different State as well as Federal departments, e.g., Regional Development, AusIndustry, Industry and Investment, Austrade, ACCC, etc
Local business networks
Professional business networks, such as Your local Business Chamber
Type of Business
Do you have an idea for a business? Do you want to buy an existing business, or would it be a brand new startup company? Perhaps you’re setting up an internet-based business. Have you thought about the expenses for operating as well as the pricing structure, employee plans, and the timings of your business? Do you plan to operate out of a store or an office? Have you reviewed Local Council Regulations? Are you aware of what insurance and licenses you’ll require? Did you do your homework? Do you know if there is a market for your service or product?
Are you planning to start on a part-time basis or just jumping into it? Have you created an outline of your business? Do you think your venture is likely to succeed?
Don’t start your business until you’ve gone through all of these points. Keep in mind this: business is a field that requires to be researched as hairdressing, accounting, carpentry, and design. Do your due diligence.
Author, John Kirk, is a Small Business Trainer and Mentor, a Public Speaker, and Financial Advisor. John instructs Micro Business Management at Illawarra ITeC, One of the biggest Training Organizations located south in Sydney, Australia. Additionally, he frequently offers seminars and workshops on budgeting, cashflow marketing, networking, and business-mindedness for small-scale entrepreneurs.