Checklist for starting a small business in Australia

Take advice on the best structure for you – sole trader, partnership, trust, company

The advantages and disadvantages of one form of structure over another are determined by factors such as:

• The size and nature of the anticipated operation (tax and duty considerations mitigate against “changing horses midstream”)
• Transfer duty (stamp duty), CGT and GST could be involved on “changing horses”
• The stage of life and personal aspirations of the participants
• Asset protection of the promoters/participants
• Tax efficiency
• Succession planning considerations – some structures are easier to “exit” or “cash out” than others
• The cost of initial legal and accounting structural advice is small compared with “changing horses” later

Tip – Get advice on this before you begin as changing later will usually cost you more in legal fees, accounting fees, stamp duty and capital gains tax.

Graham Corney

or

Andrew Lind

Register your “Business Name”

• State Legislative requirement – i.e. state-based is necessary except for trading in own name
• All entities required to register
• Doesn’t “protect” a trading name
• Regulatory rather than protective, based on public need to know who is behind a name
• Important item of intellectual property – see later

Tips

• Check online for free to see if the name you want is available
• If you register a company you can trade in the company name without registering a business name as well.

Andrew Lind

Register your Domain Name

Do this even if you are not planning to have a web site.

Tip – Check on the availability of the domain name you want before you register your business or company name.

A specialist Domain Name provider

Protect your name | Trade Mark

Tips

• Registration of your name as a “Business Name” or “Company Name” may provide some administrative protection in that the various registration offices normally have a practice of not registering identical names.
• The only sure way or preserving monopolistic rights in a name or a brand is by registering a Trade Mark.

Andrew Lind

TFN | ABN | ACN | GST … and more

• Most Australian adult individuals already have TFN to participate in the PAYG Withholding Tax system
• Other entities need to obtain TFN (Tax File Number) when commencing trading
• Despite certain exemptions most business entities will require an ABN (Australian Business Number)
• Entity holding an ABN will appear on the Australian Business Register (ABR)
• ABN needed to register for GST (Goods and Services Tax)
• GST registration required to claim input tax credits

Tips

• You can do this online.
• All trading entities appear on ABR (conducted by the ATO)
• Australian Private Companies have an ACN and also appear on the ACR (conducted by ASIC)
• A company has an ACN, an ABN and a TFN
• An individual/sole trader would only have an ABN and a TFN
• Eventually Australian Business Numbers will replace Australian Company Numbers

Your accountant

Open a bank account

Tip – Take the original of the Business Name Registration, Company documents or Trust Deed.

Your bank

Terms & Conditions – customers – document and communicate

Tips

• Consider what the terms and conditions of your larger competitors are
• What is your return, refund and exchange polices?
• What is the process if your customer thinks they have received a defective product?

Andrew Lind

Leasing Premises

Tips

Signing a “Letter of Intent” or “Agreement to Lease” is often, right then, a binding lease and you have lost any real bargaining power to negotiate the terms of the lease. Speak to us before signing such a document so that we can give you some words to make any agreement subject to a formal Lease Agreement on terms to your satisfaction being entered into.

Andrew Lind

Work Cover

• It is an offence and also greatly unwise not to have compulsory work cover insurance if employing
• Restrictions on cover for directors

More information: Qld

Work Cover

Insurer / Insurance Broker

Intellectual Property

Graham Corney

or

Andrew Lind

IT Consultants