Things to consider before starting a businessWed, 28th Aug 2019
Ok, so you’ve had the (brilliant!) idea, you’ve got the passion, and you’ve started working on the plan to start your business. But do you know what laws are applicable?
As a small business owner, being legally compliant depends on your awareness of the rules and regulations that apply to your particular business, and it’s up to business owners to make sure that they comply with the requirements set out by Australian laws.
So in other words, it’s on you to make sure you’re doing things by the book.
Issues to consider and seek legal guidance on are:
- Business structure
- Licence applications
- The Privacy Act
- Independent Contractors
- Anti-bullying laws
- Unfair dismissal
The type of business you are starting and the structure you adopt will determine what taxes you need to register for. One thing is certain, you will need a tax file number (TFN) regardless of the type of business you're starting.
If you are operating the business as a sole trader then you can use your personal TFN, otherwise you will need to register a separate TFN if you are operating as a partnership, company or trust.
Obtaining an Australian Business Number (ABN) is not necessary to start a business, although it is recommended. Having an ABN will ease the process for registering for:
- A business name
- The Goods and Services Tax (GST)
- Pay as you go (PAYG) withholding tax
Your business will have the best foundation when you understand and comply with the legal requirements applicable.
Another way of looking at it, is you want to give yourself – and your brilliant business idea – the best chance for success.
At Carroll Goldsmith we work regularly with small business owners and love supporting new small businesses get off the ground in a legally compliant way. Before launching your business we recommend you consult with us regarding licences, registrations, contracts and leases so that we can ensure you get on your way to navigate the exciting road ahead, with more confidence.
www.business.gov.au and www.mybusiness.com.au were referenced for this article.
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