Getting An ABN In Australia
Starting a business of your own is a thrilling activity. Starting a business is one of the most satisfying endeavors to take upon as one is independent to take decisions as well as one is working for onesself. The fruits of hard work seem sweeter as you undertake lots of efforts to set up an enterprise and see that it runs smoothly.
A primary factor while starting a small business in Australia is to determine what type of company structure you are going to need for your individual service. It is imperative that you select the correct business structure for your business. Here are the main types of business structures currently available.
Sole trader: This option is chosen by many people who don’t have employees. Sole Trader business structure is the simplest structure available. . If you intend to establish a business as a sole proprietor, you're starting your business as an individual that is trading by yourself so you need to understand that if your business gets sued, then they are suing you as an individual
Partnership: Partnership is recommended when 2 or more parties whish to start a business. Both parties split the profits and liabilities equally unless specified otherwise.
Company: A company is a legal entity separate from the shareholders (the owners are the shareholder). This means that it has limited liability. If the company is in debt or are sued, the general rule is that creditors cannot get access to the assets of the owner to pay off the debt because the owner is a shareholder.
· You have got to decide on a name for your firm.
· Next step is to apply for and sign up your business name with the appropriate authorities. It is imperative in Australia that you register your business name in the Australian state in which you intend to work. Previous to registering your chosen business name, you should 1st verify to see if the name is formerly registered as a business. This applies to sole traders and partnerships. If you are registering a company, you don’t need to separately register a business name – you just register the name of your company at the time of registering your company.
· The next step is to submit an application for an Australian Business Number popularly called ABN. This is a unique eleven figure number which is restricted to your business. You will use this number when transacting with other organizations or customers. It's vital to add in your ABN on your sales invoice otherwise your debtors have the claim to withhold 46.5% of any payments due to you. It is obligatory to have an Australian business number to assist in contact with the Australian Taxation Office.
· Other things you need to consider apart from ABN and business name are:
1. GST
2. Trade Mark (optional)
3. Tax File Number (TFN) Not optional
· The registration for Goods and Services Tax (GST) is to ensure that you can both charge and claim GST credits on your sales and purchase invoices. To register for GST, a registered ABN is essential.
Registering a Business or Company in Australia can be intricate. Initially you will need to register an Australian Business Number (ABN), and possibly Business Name or Company Registration, Domain Name Registration, Goods and Services Tax (GST) or Pay As You Go (PAYG). ABN Registrations are the best online small business stop shop offering business registration service. Please visit www.abnregistrations.com for more details.
A primary factor while starting a small business in Australia is to determine what type of company structure you are going to need for your individual service. It is imperative that you select the correct business structure for your business. Here are the main types of business structures currently available.
Sole trader: This option is chosen by many people who don’t have employees. Sole Trader business structure is the simplest structure available. . If you intend to establish a business as a sole proprietor, you're starting your business as an individual that is trading by yourself so you need to understand that if your business gets sued, then they are suing you as an individual
Partnership: Partnership is recommended when 2 or more parties whish to start a business. Both parties split the profits and liabilities equally unless specified otherwise.
Company: A company is a legal entity separate from the shareholders (the owners are the shareholder). This means that it has limited liability. If the company is in debt or are sued, the general rule is that creditors cannot get access to the assets of the owner to pay off the debt because the owner is a shareholder.
· You have got to decide on a name for your firm.
· Next step is to apply for and sign up your business name with the appropriate authorities. It is imperative in Australia that you register your business name in the Australian state in which you intend to work. Previous to registering your chosen business name, you should 1st verify to see if the name is formerly registered as a business. This applies to sole traders and partnerships. If you are registering a company, you don’t need to separately register a business name – you just register the name of your company at the time of registering your company.
· The next step is to submit an application for an Australian Business Number popularly called ABN. This is a unique eleven figure number which is restricted to your business. You will use this number when transacting with other organizations or customers. It's vital to add in your ABN on your sales invoice otherwise your debtors have the claim to withhold 46.5% of any payments due to you. It is obligatory to have an Australian business number to assist in contact with the Australian Taxation Office.
· Other things you need to consider apart from ABN and business name are:
1. GST
2. Trade Mark (optional)
3. Tax File Number (TFN) Not optional
· The registration for Goods and Services Tax (GST) is to ensure that you can both charge and claim GST credits on your sales and purchase invoices. To register for GST, a registered ABN is essential.
Registering a Business or Company in Australia can be intricate. Initially you will need to register an Australian Business Number (ABN), and possibly Business Name or Company Registration, Domain Name Registration, Goods and Services Tax (GST) or Pay As You Go (PAYG). ABN Registrations are the best online small business stop shop offering business registration service. Please visit www.abnregistrations.com for more details.
