One can conduct business in Australia as a sole trader, a joint venture, in partnership, as a corporation or through a Trust.
After doing a basic research on the potential market and seeking expert advice from your Melbourne accountant, a question on the business structure arises. Before starting a business, it is of utmost importance to understand what laws apply to your business.
It is advisable to consult a legal professional to help will all legal requirements and formalities that must be complied with, such as licenses, contracts, registrations, fair trading, employment, insurance, finance, credit and debt recovery and leases — something your Melbourne accountant can help you with.
Also, there should be a clear understanding of taxation obligations related to that business. There can be several Federal, State and Local government taxes and rate that apply, depending on location and size of business.
The federal government taxes can be – Goods and Services Tax, Pay As You Go withholding tax and Fringe Benefits Tax etc. State government taxes that may apply include pay-roll tax, land tax, duties and debits tax. One must contact the local council to find out what rate applies to the specified business, as rates vary from council to council.
Establishing a business can be divided into various steps:
Deciding on a business structure
Registering business name
Registering the trade mark
Registering the company
For taxation purposes, the following registrations are required:
– registering for the Goods & Services Tax (GST)
– registering for an Australian Business Number (ABN)
– registering for Pay As You Go (PAYG) withholding.
– registering for a Tax File Number (TFN)
– applying for different licences, registrations, permits and certificates that are required by the different levels of government.
After this stage, the operations can be started after fulfilling all statutory formalities with your Melbourne accountant.