Starting a business can be both exciting and challenging. It involves a lot of preparations and for you to cross the finish line, you have to focus on your goal regardless of the demands and distractions. Since a myriad of requirements must be complied in running a business, creating a checklist ensures you do not miss out any essentials. Aside from marketing and product development, you also have to think about finance and other important issues involving your business. Here are the steps to setting your business right:
1. Determine the business structure that suits you.
Before you start a business, it is important to figure out the business structure, which is suitable to you. Whether you want to be a sole trader or in a partnership, trust or company identifying the business structure that works for you will help you weigh the pros and cons of each type.
2. Get your business registered.
Once you have chosen a business name, you need to get it registered before considering having letterheads, business cards, websites and logos. This is to ensure that the name is accepted by the Australian Securities and Investments Commission (ASIC). You will also have to decide whether or not your logo or business name should be registered as a trademark.
3. Secure an ABN
When you are registered to collect GST, you will need an Australian Business Number (ABN). This can be secured from Australian Business Register’s website. You will also need to apply for a Tax File Number (TFN) from the ATO if you are going to open a partnership.
4. Be familiar with PAYG withholding responsibilities
For employees to make PAYG payments, their salaries must have taxable amounts. Without familiarising yourself with PAYG, you will never know how the payments are deducted. It is also important to seek advice from your accountant to ensure your business meets its tax responsibilities.
5. Check permits, licenses and legal requirements
Your business cannot operate without securing national or local licenses. Aside from licenses, you will also have to check out the ATO’s fuel scheme information to find out if your business is eligible for fuel tax credits. Being familiar with the laws that apply to different products, services and businesses is also essential. You can check out Competition and Consumer Act or visit Australian Government Department of Industry to know your legal obligations. These resources are going to help you gain a deeper understanding about privacy laws, Australian consumer law and other legal responsibilities.