Thinking about how to start a small business Australia? Taking the plunge into a new business venture is both exciting and daunting. To make the process as smooth as possible, you need to comply with the regulations where you live. If you live in the land down under, here are 4 things you must do before launching your business.
Prepare Your Business Plan
The initial stage is to lay the groundwork for your small business ideas. Make sure you know what your company’s name is and what kind of product or service you want to sell. Certain industries have their own set of rules and regulations that you must comply with. The type of business structure you want is also crucial. Whether you’re a sole trader, or you want to build a company or a partnership, it influences the types of permits and licenses you must obtain, as well as the taxes you have to pay.
Apply for ABN and Register Your Business
Once you have a settled business plan, you need to apply for an Australian Business Number (ABN) and register your business name. The ABN is an 11-digit number that serves as a unique government-issued ID number for your business. With an ABN, you’ll be eligible to register your business name, apply for small business grants, and claim taxes like the Goods and Services Tax (GST). Also, you can apply for an ABN and a business name registration at the same time.
Register for Taxes
An important part of knowing how to start a small business Australia is registering for the correct taxes to avoid any potential legal ramifications. Some taxes you must register for are required for all business types, while some others vary depending on the sort of business you want to start. Examples of common taxes that businesses apply for are the GST, the Pay as You Go (PAYG) withholding tax, and the Fringe Benefits Tax (FBT).
Obtain Business Licences and Permits
Part of knowing how to start a small business is knowing what licences and permits you need to obtain. Licensing and permit requirements may differ depending on your industry, local regulations, and your business structure. It’s advisable to hire a lawyer specialising in this matter to save time and potential problems. Now that you know how to start a small business Australia, prepare yourself for all the legal paperwork you need to do.