Do you want to start your own business?
That’s great!
But before you begin the whole process, there are four important things you need to understand about being in business.
Let’s get right into it…
1. Your business structure
The first thing you need to get right is the structure of your business.
You have a few good options you can go for like a partnership, trust, sole trader or a company.
Why is choosing the right business structure so important?
- Because it will dictate the way your business will be run in the future
- It will determine your taxes
2. Australian Business Number (ABN) Registration
When starting a business, there are certain rules and regulations you need to consider.
One of them is having an ABN. Everybody who has a business in Australia should have an ABN.
Why you need an ABN?
An ABN is a registration number for your business; it is your way of being able to do business.
You can run a business without an ABN, but that means when you do work for someone they are legally required to withhold 50% of that invoice and send that to the tax department.
A business can run without an ABN, but that means the businesses it deals with are legally required to withhold 46.5% of the amount of the payment.
Let’s say, for example, that my mate Pete gives me an invoice for $100. I need to give him back approximately $50, then I need to pay $50 to the tax department on his behalf.
So yes, you really need an ABN for your business.
3. GST (Goods and Services Tax) Registration
Do you need a GST registration for your business?
GST is a tax of 10% on most goods, services and other items sold or consumed in Australia. It applies to most Australian businesses.
Make sure you understand how your business structure will affect your taxes and, consequently, your business’ growth.
4. Your obligations when hiring people
When you’re in business, one of the greatest joys is seeing your business grow. If you can help other people and other families in the process, even better.
You can experience this joy when hiring people.
The thing with hiring new people is you can either get it right… or wrong. There’s no in-between.
One thing you can do to make sure you do it right is to understand all your obligations in regards to hiring people.
Here are a few essential things you should know:
- How the workplace needs to be set out
- What wages and holiday benefits you need to pay your employees
- What leaving entitlements are your employees supposed to have
When you understand all your obligations towards your employees, you will end up with a place where people want to come to work every morning.
You might also be interested in: 4 Important Things You Need To Know If You’re An Employer
Are you ready to start a business now?
I can assist you in making the right decisions when it comes to your business. Whether you have questions about company set up, business structure or registration, I am here to help you. Let’s get in touch now.
