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Business

  • Written by Emily Stuart


Launching a new startup in Australia is both exhilarating and terrifying. You’re finally the boss seeking excellence while pursuing your passion. But you still have a bucket list you need to tick off to ensure everything starts smoothly.

 

Here’s a list of the first things you need to register a business Down Under:

 

1. Choose a business structure.

 

The business entity you pick will depend on three major factors: liability, taxes, and records management. Here’s a cursory glance at the distinctions between the four most popular types of business:

  • A sole proprietorship is easy to establish and provides the owner with full management control who is also personally accountable for the financial liabilities of the enterprise.

  • A partnership comprises two or more people who agreed to share the profits and business losses.

  • A corporation is a legal entity that oversees a business, distinguished from the founders that manage the organisation.

  • A hybrid partnership, the Pty Ltd, short for Proprietary Limited, enables profits or losses to be passed to the owners without taxing the business. It also protects owners from personal liability.

 

2. Apply for an Australian Business Number (ABN) and register a business name.

 

The ABN is an 11-digit number unique for every business and required by everyone who wants to set up a business in Australia. There are three ways to apply:

It is necessary to apply for an ABN as it can save your business time and resources. You will also find it easier to negotiate with other firms, the Australian Tax Office (ATO) and government entities. You can claim tax breaks and receive grants with this.

 

3. Find a funding source.

 

  • Angel Investors are wealthy people who support startups and gain a significant stake in the business for their help and resources.

  • Crowdfunding is a way of raising funds by sourcing small contributions from several people instead of receiving the entire sum from one lender or donor. It also serves as a marketing strategy.

  • Grants may come from all branches of government and several organisations. Getting the grant money can be challenging; however, it’s worth hiring somebody who understands the ropes comprehensively and can assist with the required documents.

  • Small business loans can take different forms, such as invoice factoring, equipment finance, business term loans, and merchant cash advance option, coming from a variety of lenders.

 

4. The taxes you should register for depends on your business type, and some examples are:

 

  • Goods and Services Tax (GST)-You need to apply for GST if you own a business with a revenue of $75,000 or higher.

  • Pay as You Go (PAYG)-Under the Pay-as-you-go (PAYG) withholding regulations, you should collect tax on payments you make to your workers so they can meet their end-of-year tax obligations.

  • Fringe Benefits Tax (FBT)- If you provide fringe benefits to your employees, you will have to pay fringe benefits tax.

 

There are no restrictions on who could become a successful business owner. You wouldn’t need a university degree, a handful of investment money or even decades of industry experience to build your dreams. With the basic rules above resolved, you’re almost ready to go.

Author Bio: Emily Stuart is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry.  She is a multi-niche content chef who loves cooking new things.