There are many things to think of when looking to start a business. From choosing a business structure and legal issues to tax obligations and financial management, there is a vast range of things to consider so as to ensure the smooth running of your business. Below are a few key areas that should not be forgotten when establishing a business.
Business Names, Structures and Registration
Before starting a business you should consider how you would like to structure your business to suit not only the type of business but your personal situation.
Functioning as a Sole Trader is the simplest and most inexpensive form of business structure to set up. Although, it is important to note that you will still be personally responsible for any actions of the business and personally liable for all business debts. You should seek professional advice to understand your options and what is the best structure for your business and your situation.
One of the most important things that you will do is to name your business, and it is crucial to remember to chose a name that is fitting to your business offering. You should ensure that your business name is registered with the department of fair trading in your state and be aware that in some cases this process should also include registering a trade mark, which is a separate action.
Generally speaking, most businesses will require some type of business license in order to trade, therefore it is essential that before you start operating you research and obtain the relevant license/s that are required.
Perhaps one of the most over-whelming aspects for new business owners is the vast array of tax obligations and requirements that need to be adhered to. From Federal Taxes such as Goods and Services Tax (GST), Income Tax and Capital Gains Tax (CGT) to State Taxes such as Payroll Tax and Transfer Duty it is important to understand the obligations of your business so as to avoid any penalties. Taxation obligations do not just refer to payment of taxes either, it also concerns the processes that your business has in place for the recording and tracking of financial information.
Sound legal advice is also key to setting up and maintaining a successful business. Gaining legal advice can help you to make informed decisions in relation to forming business relationships and dispute resolution, employment issues and solutions, insurance, intellectual property protection and occupational health and safety.
In starting a business one key issue that many people struggle with is building up the finance. There are two ways to do this: either borrow the funds (debt equity) or use any funds that you have available to you (owner’s equity). In choosing between the two it is important to consider things such as interest rates, fees etc.
Systems for the management of your cashflow don’t have to be too in depth, however even the most simple of systems are integral in making sure that you can keep track of where your cash comes from and is spent.
The team of accountants, lawyersand business advisors at The Quinn Group can assist you with a wide range of services required to establish and maintain a business. For individually tailored information and advice for your new or existing business situation contact us on 1300 QUINNS or click here to submit an online enquiry.