Starting a New Business in Australia: What Entrepreneurs Need to Know
Running a business is not just about having a big idea. It involves adhering to all the legal requirements to formalize the venture. Luckily, registering a new Australian business is not as hard as it may first seem. Here are some key steps to help begin the journey.
Deciding on a Business Structure
For starters, one must decide on the kind of business they want to run. In Australia, there are three types of business structures to choose from – sole traders, companies, and partnerships. Each of these have different legal and tax obligations. For instance, a sole trader is an individual running a business, while a partnership involves two or more people sharing income and running costs of a business.
Registering a Business Name
Once the business structure is decided, the next step is to think of a business name. This is important as it gives a face to the business. Entrepreneurs can easily register a new Australian business name at register.biz.au. Remember, a business name should be unique and represent the nature of the business well.
Obtaining an Australian Business Number
One crucial step for every new business in Australia is obtaining an Australian Business Number (ABN). An ABN is an 11-digit number that identifies your business. It will be needed while ordering goods, claiming credits and when providing invoices.
Understanding Tax Obligations
Running a business brings different tax obligations. According to the type of business one has, they have to register for one or more types of business taxes. These taxes include GST (Goods and Services Tax), PAYG (Pay As You Go) withholding tax and others.
Getting Insured
Some forms of business insurance are mandatory in Australia such as workers’ compensation insurance and third-party personal injury insurance. Depending on the nature of the business, other kinds of insurance might also be necessary, like public liability insurance, product liability insurance, or professional indemnity insurance.
Following these steps will help kickstart your business on the right note. Remember to seek legal and professional advice on aspects of running a business to ensure everything runs smoothly. Starting a new business is an exciting and challenging journey. With the right planning and understanding, Australian entrepreneurs can take the leap confidently. Happy business running!
Register your new business name at register.biz.au
