Business Info

Your business structure can define the success of your business and each entity has its own per-requisites and impacts upon the business itself. The business structure you will select is also dependent on various elements such as the type of business, the number of people you will hire, partnerships in the business, and the long-term development plan of your business. When choosing your business structure it is recommended that you seek the advice of a professional accountant to ensure the saving of both time and money (during setup and afterward). Your accountant should understand Australian business economics and legal regulations deeply and can provide solutions/advice in selecting the best business structure. Below are the main business structures you will come across in Australia. Sole Trader Business Structure It is considered as one of the easiest forms of business structures in Australia. In sole trader structure, a person, alone is responsible for all business operations. Setting up this plan of business is also easier because it involves very limited legal and tax regulations. The income tax you receive on sole trader business structure is measured based on your personal tax rates. Although your personal liabilities will be unlimited but since you will not be considered as an employee under this structure, you are devoid of paying payroll tax or superannuation. This helps you immensely and as your business grows you can alter your business structure later on. However, you will need the assistance of accountant to help you out in the changing of your structure and income tax deductions. Trust Business Structure Unlike sole trader, trust business structure is a complex thing to set up and requires rigorous workout and regulation. In this setup, a person or company will become a trustee for the assets of a beneficiary. They will conduct and do business on the behalf of the beneficiary. There is a chance of maximising savings by proper distribution of profits, a process in which both parties can obtain several tax benefits. An accountant will be able to define the proper strategy to obtain maximum tax benefits, this is a crucial service for the better management of your economical taxation and accounting matters. Partnership Business Structure Like the name suggests, the partnership involves two or more people in managing and operating a single business together. For those eager entrepreneurs who specifically wants to raise their finances, this business structure is the best option. However, when a business is done in partnership, written agreements should also be done. Disagreements can happen when two or more people operating a business in making decisions. To avoid such hassles, a written agreement can benefit and constitute all within the partnership. Company Business Structure A company is considered as a legal entity under Australian business laws. When a person forms a company, it should be registered with ASIC ( Australian Securities & Investments Commission ) and this same government authority also regulates them. It is the costliest business structure to set up. The company must have shareholders or directors that are responsible for the operations of the company. The income tax that the owners receive is at per the tax rate of the company itself. The company owners can be eligible for tax deductions but it is important to get professional advice or assistance to help you set up and manage your business structure properly. With this overview explore the business structure you think would fit best with your circumstances. If you would like advice on what structure is best suited to your business, ND Accounting offer a 30 minute free consultation. Book online here .

Is your accountant working hard enough to reduce your taxable income? Does your accountant plan ahead and give advice? Are you starting out in business and looking for an accountant? Individuals and businesses find it hard to choose an accountant when starting out in business or some businesses have an accountant but have a misconception that by changing accountants it will be difficult and they will not know enough about their business and tax affairs. Nothing could be further from the truth. A good accountant should, in only a very short space of time, using the financial statements and tax returns prepared by your previous accountant, get a very clear picture of how a business operates and what the tax and financial issues are. Because your accountant should be a dependable business adviser, you need an accountant that you can trust, get along with and can provide a personalised service.

When to register for GST and how does GST work and affect operations.

Small businesses take up 97 percent of all businesses in Australia. Running your own business has many advantages however the truth is according to the Australian Bureau of Statistics, more than 60 percent of small businesses cease operating within the first three years of starting. Below are some tax tips that will really benefit you if you own a small business or setting up a small businesses.

If you are running a business you will need an ABN, even if your business is not going to register for GST. However you must also register for GST if you are a business and your current/expected annual turnover is $75,000 or more (or $150,000 or more for a non-profit organisation) and/or you provide taxi travel (regardless of turnover). Click here it find out more about GST and business. What is an ABN? An Australian business number or ABN is a unique 11 digit number that identifies your business or organisation to the government and community. Why do I need an ABN? It helps people to see that you have an established business. For sole traders and partnerships, you need an ABN to register a domain for your website. The is the www.companyname.com.au If you want or need to register for GST, you must first get an ABN ABN is mandatory for certain dealings with some Government and non Government bodies. (For example you need an ABN to open a bank account for your new business which every new business should do.) You can’t lodge a tax return as a business without an ABN. What do I need to apply for an ABN? You can’t get your ABN until you have created the legal entity (ie the company), so you need to set up the company first and then do the ABN registration. For sole traders, the only information that you may need is your Tax file number, address, DOB and bank account details. You will also need to decide if you want a business name or need to be registered for GST. For a ‘partnership ABN registration’, you will need your partner’s details including address, DOB and TFN, Tax file number. For a ‘company ABN registration’, you will need the same details for each director. Three ways to apply for an ABN There are three ways to legally apply for an ABN through the Australian Business Register portal , in the same way that people can do their own tax returns, they can also do their own ABN registration using the services of a Registered Tax Agent – this is the simplest way to apply Considerations before registering for an ABN Business Structure Your business structure will define the success of your business in Australia since each module has its own pre-requisites and impacts upon the business itself. Registering your ABN as a sole trader is simpler and least expensive but that doesn’t make it a good reason. Multiple owners can set up as partnerships or companies. Brand How your business is going to be branded? Do you want a business name? If so, then its a good idea to check the availability of the name and domain before doing the ABN registration. GST Registration You need to decide on this when you do your ABN registration. TFN registration If you set up a new partnership or company, then you need a TFN and you might as well do it at the same time as getting your ABN rego. Business Plan A business plan should question the validity of your ideas, the product/service target markets and so on and then be regularly reviewed and updated. Read more here . For further assistance book an online obligation free 30 minute consultation here .

Many people dream of being their own bosses and starting their own business for a better lifestyle. The unfortunate reality is 90% of start-up businesses fail. Business plans are not just created if you’re seeking finance for your business, it’s a tool for understanding how your business is put together. A business plan should question the validity of your ideas, the product/service target markets and so on and then be regularly reviewed and updated.