Starting a business is an exciting prospect for many, but there are a lot of things that need to be done in order to ensure your business starts of on the right track.
Here are some of the things that you will need in order to start your business:
Choose your business structure
The right business structure can help reduce your risk in the business as well as the taxes that you have to pay. There are three common structures to consider: you can setup as a Sole Trader as the easiest and cheapest method, though you may also consider a Partnership or Company structure in order to maximise your deductible business expenses.
Apply for an Australian Business Number (ABN)
An ABN is a unique number to identify your business to other businesses and to government bodies as the ATO. An ABN application is free and is very quick. Read more here about how an ABN benefits you.
Register your business name and trade mark
Similar to your ABN, your business name identifies you to others. You can think of your business name as a key part of your brand – if it’s easy to remember, unique and inventive, it’s likelier to get your customers to remember it! Registering a business name doesn’t prevent others from using it or a similar name, so if you are focused on protecting your brand, you may want to consider trademarking it sooner rather than later. However, do not that trademarking can be an expensive and time-consuming process, so only proceed with it when you are confident that you will have the necessary resources and activities to promote the brand recognition.
Register a website name
Today, any company that doesn’t have a website is as good as extinct. A website is prime real estate, where potential customers can find 24-7. Having a unique website name is important so that people can find you easily, and not misspell it for other websites instead.
Your website is an integral part of your marketing and branding efforts, so be sure to hire an expert website developer to help you with the setup.
What taxes do I need to register for
There are various taxes that you need to consider, such as Goods and Services Tax (GST), Fringe Benefits Tax (FBT), Pay As You Go (PAYG), and Payroll Tax. The taxes that you pay depend on your business structure, size, and nature of business, so be sure to consult with a tax advisor to not miss out on paying your taxes.
Registration and licences to Start a business
There may be a multitude of licenses and registrations that you need to acquire before starting your business, or you may risk closure due to non-compliance or other legal issues. You should check out (Australian Business License and Information Services) ABLIS to review the type of registrations and licenses your business would need.
Buy or lease a business premises
You may decide to purchase or rent a commercial property and/or equipment for your business. There are tax implications and significant impact to your cashflow, so be sure to consult with an expert to review whether your business is ready to purchase or rent, and even review the contracts to minimise or remove risks and unfair clauses.
Arrange insurance for your business
Every business deals with risks, and insurance is a key strategy in managing and even reducing these risks. There are numerous insurances to consider such as workers compensation if you employ staff, third party personal injury if you own a motor vehicle, and even public liability insurance for certain types of companies.
The important thing is to understand your options and obligations before committing to an insurance option, as you want to ensure the insurance covers enough while also not requiring an arm and a leg in cost.
Starting a business is an exciting venture, but make sure you got your bases covered from the start! To help you tick all the right boxes, contact Femia Accountants today on 9316 4500 or book a time to meet with us.