Have you, like many people, welcomed in the new year with new ambitions and goals and have decided you are ready to take the jump into a new business venture you’ve been planning for ages? Before you do though are you asking, how do I get started?.…
What business structure should you use
Before you move on to anything else, you’ll need to decide what business structure you should operate from. This is an area that we find people often don’t investigate enough prior to establishing their business. Each structure type has its own positives and negatives, and we can’t stress how important it is to speak to your business advisor at this early stage to make sure you’ve chosen the right one for your new venture.
There are four common business structure types to choose from:
· Sole Trader,
· Partnership,
· Company, or
· Trust
Depending on how complex your new venture is, you may use one or a combination of the above.
Getting an ABN and registering a business name
Once you have chosen and, if required, set up your business structure, you can then register your business by obtaining an Australian business number (ABN). An ABN helps you deal with the tax office regarding your business and allows you to register for GST or PAYG Withholding if they’re required.
You’ll need to register for GST if your business is expected to turnover more than $75,000 and if you’re employing then a PAYG Withholding registration is also needed. There may also be other business registrations you’ll need to register for like Fuel Tax Credits if you’re using heavy machinery or trucks, or Excise duty if you plan on brewing beer, spirits or wine.
Once you’ve got your ABN, you can then register your business name and attach that to your ABN. A business name is needed when the name of your business is different to the name of the legal entity that is operating the business.
Your advisor can help you decide which registrations will be required, and they can help you complete these, or you can register them yourself through the following link: https://register.business.gov.au/
On to the nitty gritty
Once you’ve completed the above, then you’ll be ready to get into the real detail of what you’ll need to finish establishing your business.
Some considerations you might have are:
· Insurances: Public liability; business insurances
· Licenses or permits required
· Funding needs
· Record keeping requirements
· Hiring employees
· Marketing
· Shareholders agreements
And the list goes on…
It’s a daunting world establishing a new business, so make sure you speak to your advisor to make sure everything is set up right at the beginning, as this will make transitioning into your new venture much easier.
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