Setting up a business in Australia
Gain the clarity and confidence to start your business right
Setting up a new business
If you have recently made the exciting decision to start a business, you are likely getting a whole lot of advice from the grape vine. There are a lot of things to consider and you want to start on the right foot!
It's a little overwhelming, so Trekk helps you through the maze to help you feel in control and confident that you are making all the right choices, and ticking all the necessary boxes.
HELPING WITH
- Choosing the best business structure
- Efficient and cost effective systems in the cloud
- Accurate bookkeeping
- Understanding your obligations
- Cashflow strategies
Choosing the best business structure
When to register for Goods & Services Tax (GST)
Business and company registrations
Efficient and cost effective cloud software
Choosing the right business structure
The decision of what business structure is the most appropriate to your needs is something that needs to be carefully discussed. Aspects for your consideration include the following:
- Taxation effectiveness - Keeping the tax expense down and staying within the current rules.
- Asset protection - Protecting your personal and business assets as much as possible from creditors and other litigants in the event that things do not go well.
- Business efficiency - You will need to operate efficiently in your day to day transactions while providing the security your venture requires.
The type of business structure you choose will affect your taxation position, your personal legal liability, the life of your business, and the availability of capital to establish and operate your business.
There are five main structures used to operate a small business: Sole trader, Partnership, Company, Discretionary Trust or Unit Trust.
When to register for Goods & Services Tax (GST)
GST is a broad-based tax of 10% on the sale of most goods and services and other things in Australia. By registering for GST, you’ll also be entitled to claim input tax credits.
If you have or expect to have a turnover of $75,000 or more, you must register for GST. If you provide taxi service or are a car hire operator, you must register for GST regardless of GST turnover. If you’re eligible to claim input tax credits, you must also register for an ABN.
You can choose whether to register to pay GST to the ATO on a cash basis (as you spend and receive money) or accruals basis (as you invoice or are invoiced). Remember – when you receive money from your customers, this includes GST which is not your money to keep. It will eventually need to be paid to the ATO.
We can assist you with this application and determine if you need to register for GST.
Business and company registrations
There are a few required business and tax registrations you will need to complete before starting your business. Getting these sorted is the first step towards becoming an Australian business. You'll need to register your business with the Australian Taxation Office (ATO) as well as the Australian Securities and Investments Commission (ASIC) if you are operating as a company.
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Applying for an Australian Business Number (ABN)
An ABN is a unique identifier that allows you to register with the ATO as a business entity and start trading. It's important to get your ABN before you start trading so you can keep track of your finances properly and pay tax appropriately. The process to apply for an ABN is relatively straightforward - but we are always here to help you through each step of the process of starting your business.
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Applying for your business Tax File Number (TFN)
If you are planning to operate as a sole trader you can utilise your individual tax file number, but if you are going to operate underneath another type of structure (partnership, company or trust) you will need to register for a new TFN just for your business. If you are working with us to properly set up your business structure and get started, we can take care of all of this for you.
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Registering your Business Name
Your business name is how you will be known to the world and should be unique and relevant. You should also consider your competitors and make sure it will stand out, and the emotional affect it could have on your customers. If your business name is different from your own name, you will need to register it.
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Additional registrations
There are numerous additional registrations that could be required or recommended, including:
- Pay as you go (PAYG) withholding - If you plan on paying salary and wages
- Licences and permits - Depending on the type of business you plan to start you may need certain licences or permits such as zoning laws or food licences.
- Trademark
- Business domain names
Efficient and cost effective cloud software
Running a business can be hard and extremely unpredictable. One thing that will help you along the way is ensuring you are keeping good records and have a great accounting software set up (as well as using it correctly). Having this set up and functioning from the get go could be the difference between your new venture being a success, or just unnecessary stress, as it enables you to:
- Make sound business decisions as it will give you an accurate, current understanding of your business’ health
- Meet all your tax and superannuation obligations on time
- Manage your cash flow
- Demonstrate your financial position to banks or other lenders
The Australian Taxation Office (ATO) are moving towards entirely electronic records, so ensuring you choose a software that allows you to do what you need to do efficiently as well as meeting all legislation and reporting requirements is crucial. Xero is a cloud accounting app that we love because it does all that and more.
Gain peace of mind with a free review.
Do you think you are paying too much tax? Are you still waiting on last year's financials to be completed? Do you have business goals that are not being reached? Let us help you with a free, no obligation review.
If you want to increase profits, improve cashflow, save on tax and get back on track, this is the best first step you can take.
Once you submit an enquiry, you will:
- Get a business review from one of our qualifed, experienced business advisor;
- You'll get an action plan that will dramatically improve your business;
- We'll meet with you to run through the results and best plan of attack;
- If we find nothing, you'll get peace of mind that you're doing the right thing;
- And once we're all done, you don't need to pull out your wallet - It's completely free!