Australia is a promising country when it comes to starting a business. The country boasts of highly liveable cities, astonishing beaches, and a booming economy that cause people from around the globe to take an interest. When you decide to start a business in Australia, you have to remember that you have to consider several factors. Here are some of them:
Choosing the Business Structure
Before you begin operating your business, you have first to choose the legal structure of your business. This part is crucial as it can have an impact on your assets and tax obligations. If you are buying an existing business, you have to check whether you need to undergo a new registration to suit your needs. In Australia, the most common types of business structures are:
- Sole proprietorship – you have sole responsibility for all liabilities and assets.
- Partnership – you share profit, risks, and losses with other people.
- Trust – you allow someone to run the business on your behalf.
- Company – the liability is limited to the amount invested.
Registering the Business
To operate your business legally, you have to register your business. Part of this process is choosing your business name. Know that before you can apply for a business name, you must secure an Australian Business Number (ABN). The ABN is necessary if you are planning to register for Goods and Services Tax. You can visit the Australian Business Register to begin the process.
If you believe that your GST turnover will be over $75,000, it is a requirement for your business to register for GST. However, if you are planning to run a car hire operator or taxi services, GST registration is a must regardless of the turnover. The same applies to those who plan to claim input tax credits.
Once you’ve got the ABN and GST sorted out, you must choose a business name that will represent your brand. Check if your preferred business name is available via the ASIC Online services.
Setting up Accounting and Payroll Systems
Once you are allowed to operate your business legally, you may now start setting up your accounting and payroll services Australia. These systems would allow you to streamline your finances and set you up for success. Note that the Australian government is strict about the wages that you are paying your employees. Having a payroll system in place can help make sure that your employees are paid on time and correctly.
Arranging Insurance
Your business should have an insurance policy that can cover the operations. If you want to make sure that you won’t encounter any significant problems, you may want to take more just property insurance to secure your business. Once you have the appropriate insurance, you can lessen your company’s exposure to risks and costly lawsuits.
Filing Tax Obligations
Your taxes are one of the most crucial factors that you should not forget. Make sure that you know your tax obligations. Ask these questions:
- Am I required to pay income tax?
- Do I have to settle Goods and Services tax (GST)?
- Are capital gains tax part of my tax obligations?
- Do I need to pay excise taxes?
These are just some of the things entrepreneurs must keep in mind if they intend to do business in Australia. Don’t forget to research all the items mentioned here and correlate it to your business plan. This way, you have the assurance that you are not breaking any laws when trying to make money as a business owner in Australia. You don’t want to deal with hefty penalties — it’s not good for business.
