OUR 9 POINT BUSINESS SET UP CHECKLIST

Your bank accounts and financing options can seriously affect how you do business. Be sure your accounts are set up in the correct entity name. If your account is set to your personal name then you can’t show it on your business financials.

Each business structure has different set up costs, ongoing costs, tax implications and asset protections. You are not locked into any structure, so you can change as your business changes or grows.

In Australia the four main structures are sole trader, partnership, company and trust.

We can:

• Show you how the different structures will affect how your business income is taxed and work out which is best for you.
• Look at what it would mean to incorporate your business—or remain a sole proprietor or partnership.
• Talk through different types of corporate and partnership structures.

You will need to be registered for GST if your turnover – or expected turnover – is over $75,000 per year ($150,000 or more for non-profit organisations).

As a GST registered business, you will charge 10% GST on your invoices to your customers and put this aside to be paid to the ATO. You can claim credits for the GST you’ve paid for your business purchases.

If you are not registered for GST you should communicate this to your clients on your invoices.

Insurance is an important start-up cost, which is easy to overlook.

Being uninsured or underinsured is risky, exposing your business to losses if something goes wrong. At the same time, having the wrong insurance is a waste of money.

Make sure you regularly review your insurance when your business changes or grows. Ask for professional advice to make sure you have the right cover.

The type of insurances you might need to look into:

• Building and Contents
• Vehicle
• Public Liability
• Professional Indemnity
• Product Liability
• Workers Compensation
• Business Assets
• Business Revenue

Did you know your house and savings may be at risk when you start your own business? Whether or not these assets are protected depends on the business structure you choose. We can help you make the best choice for your situation and guard your personal assets.

You need to be registered for the following items before you start trading. Some of these are industry specific and some will differ per business.

1. Australian Business Number (ABN) a unique number that must be used in your dealings with other businesses.

2. Tax File Number (TFN) a unique number issued by the Australia Taxation Office to every taxpayer (individual, company, superannuation fund, partnership or trust).

3. Business name: This can be your most valuable asset. To protect your business name and claim it as yours, you must register it at ASIC. It’s easy to do, so do this as soon as you’ve chosen your name. You can also check your name is available on the ASIC website.

4. Payroll tax: You must be registered for payroll tax if you are an employer and you pay (or plan to pay) taxable wages of over $1.1 million per year.

There are legal requirements you must understand when setting up your IT systems. Make sure you cover all bases for banking, invoicing and payment, record keeping, GST, stock and assets, and all your employee obligations.

If your business is paying wages to employees or contractors you will need to be registered for Pay As You Go (PAYG) withholding. You must apply for PAYG registration before the first day you start paying your employees or contractors.

As an employer you are required to pay 9.5% superannuation guarantee on your employees’ ordinary time earnings. Employees under 18 years old, or who earn less than $450 per week, are subject to different rules. There are also different rules for different industries.

It’s easier said than done! When you work with us we give you a detailed checklist outlining the items you need to provide – and the dates we need them – so we have all your lodgements completed in time, avoiding fines.