Hey Ladies,
Well i am starting a business and want to know who i need to talk to talk to about getting it off the ground and covering all the requirments. Is it best to talk to a accountant or someone else?
Any info on this would be very muchly appreciated.
Thanks![]()
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02-12-2009 13:48 #1
Info on Starting a small business
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02-12-2009 13:55 #2
Depends what business ur looking at starting
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02-12-2009 14:34 #3
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First off congrats on taking the big plunge to set up your own business... sounds like a great business idea and I am sure you will be succesful.
DH and I have our own business and here are the things that helpt me
- Business Victoria: they helpt with lots of things like business plans and legal http://www.business.vic.gov.au/BUSVIC/HOMEPAGE/ I notice that you are in QLD - and found this one for them - I assume it may be similar http://www.business.qld.gov.au/dsdwe...nt.cfm?id=3181
- Completed a short course in starting your own business: went for 4 saturdays and was really really helpful, throught Centre of Adult Education - but government offers lots of free seminars as well - I just thought it was easier becos everything was in one place and I didn't even know what specific seminars I needed, but in the future will look at them
- Mentor: I am currently in the process of working with a mentor to develop the business in a different direction. Again, we have a mentoring service in VIC - I am sure youwould have somethign similar in your state http://www.sbms.org.au/
A good accountant is also worthwhile.
When DH started (he a chippy) he was a sole trader which made things easy; but bare in mind that a sole trader cannot employ anyone; so you AND hubby would both need to register as soletraders and invoice seperately or you could set up a partnership etc?? Or DH can invoice and recieve the money and you not go on the books? Now we are a company, so you have other things you need to pay, but he can employ ppl and it has other benefits too.
Also, what about GST - you don't register until 75K turnover but its worth getting your head around now - as is MYOB- I did a course in it and wouldn't be without it now (or quickbooks?)
Also, we have had to get public liability insurance - so follow that up too - its really really important!
Anyway, don't mean to rabbit on or anything - drop me a line if you need any help - QLD prob has different rules but I would be more then happy to share my POV.Last edited by CookiesRYum; 02-12-2009 at 14:37.
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02-12-2009 14:39 #4
CaraT thank you, you have been wonderfully helpful
They are great ideas
I have already got my ABn (did that today)
Got the public liability qoute
Printed the buisness registration name so just need to fill it out and pay for it.
Not going to do the GST thing yet as between now and end of financial yr we wont earn over 75K LOL (i wish haha)
However i called the ATO today and they said a sole trader can employ ppland I can employ hubby for example as its all in my name? What are your thoughts on that? Who is best to seek proper advice off?
Thanks againLast edited by NinjaNet; 02-12-2009 at 14:42.
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02-12-2009 14:40 #5
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oh I wanted to add.. a great website is "flyingsolo" - google it and it will come up..
there are great links and forums where you can get help from other small business owners..
just be careful not to disclose TOO much about yourself or your business (I made that mistake and the paper ended up running a story which was not good - small country town!)
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02-12-2009 14:58 #6
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Yeh I just checked business vic website and I have it wrong - sorry..
I don't understand how you employ someone though - whether its a subby or an employee. Check with your accountant about the impact of workcover etc?
See the main difference is a sole trader/unlimitied partnership "you" and the "business" are considered one in the same financially and legically.
Other structures allow for you to seperate the business from you - so if the business goes under etc you don't loose your home or personal finances.
Is the abn in your name? Your DH has an ex and children from previous r.ship doesn't he?
I would definately check with accoutnant first - sole trader is cheap to set up and run, but has alot less tax advantages and a much much higher tax rate. It can be up to 45cents in the dollar, while company tax in capped at 20cents in the dollar.
For us, we now have a company and a family trust - I don't really understand it all, but it keeps our house untouchable to the bank, has the most tax benefits and by having the trust money is distrubuted through us and one day our kids.
In effect, say the "business" turns over 100K with a profit of 70k - depending on your setup will impact on how much you pay the government and CS and how much you recieve back from the government in benefits. You have one kid and twins on the way yeh? you can distrubute through all 3 kids (not sure amount) and DH (or you may leave him out)
Anyways, it gets a bit tricky adn I don't understand the ins and outs, but given your children and CS etc, I would definately look into it carefully.
Sole trader may still be the easiest way to go, but you may find something else is more suitable?
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18-12-2011 23:29 #7
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Most small businesses of thr type you are talking about might be done through a family trust or partnership, in any case if you can find a way to split income by employing your husband, you reduce tax liability. An accuontant will help with that.
You should worry sbout actually getting started before getting bogged down in these details imo
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18-12-2011 23:35 #8
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Talk to an accountant about structure, re risk and tax minimisation.
A sole trader can employ people. I don't understand why they couldn't. It just may not be the optimal structure.Last edited by MsMummy; 18-12-2011 at 23:38.
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19-12-2011 00:05 #9See the main difference is a sole trader/unlimitied partnership "you" and the "business" are considered one in the same financially and legically.
Bear in mind you don't have to have an ABN to run a business.
And being a sole trader comes with a huge financial liability.
Also bear in mind that if you don't register for the GST you can't charge or claim GST or expenses. This is why people register even though they don't earn over the threshold.
And this is also why you are better of speaking to a small business accountant (like doctors, there are different types of accountants).
You can find one via your business education centre in your state or territory.
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19-12-2011 00:55 #10For us, we now have a company and a family trust - I don't really understand it all, but it keeps our house untouchable to the bank, has the most tax benefits and by having the trust money is distrubuted through us and one day our kids.
There are different types of trusts (unit, discretionary, family). I'm assuming by what you have written that you have a company/family trust structure. But really, it depends on how your accountant has set up your wealth distribution programme which would determine exactly what trust it is. Essentially the only difference is the way money runs through them.
A trust is a business structure set up to minimise tax and other liabilities and one that requires a trustee, a trust and beneficiaries.
The trustee which is the company (Pty Ltd) is the legal owner of the property (ie your house) and distributes income to the beneficiaries of the trust (the beneficial owners of the property), who are usually family members (you). In this way a person who would otherwise earn a large taxable income can split his or her income between beneficiaries who have low marginal tax rates as income earned by the trust company.
Because you don't own the asset (ie the house) or any of the money held in that trust and the trust does, you don't pay tax on it per se. (Tax is paid on profits but I won't complicate this by going into that). Further, there is no tax at trust level provided profits are distributed and a 50% capital gains tax discount will apply and flow through to beneficiaries.
The trustee who holds the trust on your behalf is empowered to distribute the trust income to the beneficiaries and in what proportions he or she chooses. In the case of a family trust the trustee could, for example, distribute income to the children of the family rather than you, thereby reducing the taxable income of the parents.
In your case, your company is not used for trade as such (as this defeats the purpose of tax minimisation and liability) but to furnish the set up of trust. You would use a separate company/trust for trading.
So, in essence, you are not in the same category as the OP.
If you don't know any of this, my gentle suggestion would be to find out. You can do this by locating the Trust Deed which sets out who gets what and who has what power as well as the rules set out as to how the trust is to be run. You can have your accountant explain this to you. In the trust you have the following players:
- the Settlor who sets up the trust (not you);
- an Appointor who calls all the shots (it's probably not you);
- there may be a Guardian appointed as well (optional, probably not you);
- the Trustee or Trustees - legal owners of everything in the trust (might be but probably not you);
- the Beneficiaries - the people for who the trustee holds the assets (might be you).
There are responsibilities involved when you are part of a structure such as this so if you don't know then it pays to make sure you know in case you have any little surprises down the track.
Hope this helps.
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