Own business?

[Chickadee]

I might be looking for too simple an answer to a question here, but figured I'd try. Can anyone tell me what is involved in setting up my own business. Without going into detail of what I do, I would be providing my own time and professional expertise on a time charge basis.

Do I need to actually register myself as a business, or do I just call myself "self-employed" for tax purposes? In either case, what are the tax implications, anyone know? Like differences in tax rates, and how frequently I would need to report and pay tax? Even a quick link to the right part of the ATO or another business site would be useful at this point.

Help!

[Pixie]

I have my own business, you will need to check the name you want to call it isn't taken you can check that on the ABN website you will need an ABN as well it's all free and there is a mountain of paperwork to fiill out once that's done you're done!

I haven't done a BAS yet so can't help you there but there are tax benefit on claiming things once you reach a certain income level

[lukaelmo]

DP is self-employed and I have my own fledgling business.

To start your own business you register a business name, you apply online, pay the fee and voila - you have a business. The advantage of this for me personally is to be able to buy wholesale.

If you want to be self employed you need to apply for an ABN and now DP is going for a walk and he will tell me more when he gets back:rolleyes: . He is taking the dude though, so can't complain.

Try here: http://www.business.gov.au/Business+Entry+Point/

[Chickadee]

Do I have to have an ABN & business though? Does every plumber with his name in the phone book have an ABN? Or can I just be self-employed? Maybe I'm just playing with words and it makes no difference.

Edit, aaaaah Ali. We posted at the same time and you've made my question obsolete :D :laughing: I'll check out that link, thanks. And if your DP can add any more info I'd be grateful.

[Ana Gram]

Pretty sure you have to have an ABN to run as a buisness but I don't think you have to pay GST until you earn $50,000 (I think but don't quote me). Best option would be to talk to the ATO if you aren't sure to make sure you have covered all your bases.

[Chickadee]

Chelle, I'm hoping I'd have to pay GST :laughing:

[Ana Gram]

Me too! Hopefully getting my buisness up and running soon too.

[PhAnToM]

i run a small business too.
Like Chelle said..
I got a business name, and i got an ABN (but only cos for advertising purposes, they required it).

But the $50K threshold is also what my accountant had told me when I set the business up a year ago.
Good luck with that Martha!

[lukaelmo]

Okay... DP is self employed.

Regarding GST, when you register that you are self-employed you are given an ABN and the govt then expects you to charge GST. DP adds on the 10% and then pays it quarterly. He said to find out how to pay you need to go to the ATO site.

He then started blathering on about his BAS, but my head hurt.

I will try and get him to come here and post about it after dinner. He is generous when his tummy is full :D .

Gee, what a whopper of a businesswoman I am. Thank goodness daddy is an accountant :laughing:!

[Chickadee]

Thanks Ali & Lut.

I prodded the brain of a super-dooper business-type friend of mine, and he thought the GST threshold was lower, but his company's billing is so far over it that he's probably not up to date on it and could well be wrong. He also suggested getting an accountant on board early to get it right from the start, and also professional indemnity insurance ($3000 per year, ouch!). So in the short term I'll stick with researching and set up a business plan to use in a year or so.

Chelle, good luck with your business :) Let us know how it goes.

[PhAnToM]

No problem Martha.
I am actually certain she (my accountant) had said at least $50K (i actually remember it being somthing like $52K, but sticking to $50K to be safe).

Yeah, I think getting an accountant on board early in the game is best. Mine accountant has been great. She did a great job of covering everything I needed to know, so I didn't do anything wrong.

Good luck with setting up your business Martha! :thumbsup: