The prospect of starting a new business can be both exciting and nerve-wracking at the same time. In the first place, you will finally be in control of your destiny, one that pursues a career in an area you are passionate about. Contrarily, you now have a laundry list of things that must be accomplished before the project begins.
The majority of these responsibilities are removed when you work for someone else. As a startup owner, you are responsible for all of them. Not only that, but every country has different laws, regulations, and requirements for starting a business.
Therefore, even if your business started in one country, you still need to research in another to ensure it’s conducted properly.
Here’s a quick list of what you’ll need to do if you’re looking to start a business in Australia:
- Decide on a business structure
- Name your company
- Insurance, registration, and tax payments
- Registration of a domain name
- List your sources of funding
1. Decide on a business structure
This is a key decision when starting a business. The legal structure you choose for your business will affect your tax bill, ability to sell shares, liability, setup costs, and ongoing expenses. Make sure you understand your options.
Commercial entities in Australia fall into four main types. They are sole traders, partnerships, companies, and trusts. There are also cooperatives and incorporated associations.
Choose the best structure for your business based on size, circumstances, ability to handle admin and paperwork, and future potential growth. When your business grows or you take on riskier projects, it could be a sign you need to change. You aren’t bound by the structure you use. You must adapt as your business grows or your circumstances change.
It will cost you money and require professional guidance, especially when assets and contracts are involved. You should consult with your commercial, employment & family lawyers in Melbourne for better guidance.
2. Name your company
It does not matter what you think; naming your business is a critical decision to set you up for success. Does it matter so much? The answer is yes. A name for your business creates a sense of belonging for your customers.
Further, it helps your customers differentiate your business from your competitors. It is mandatory to have a company name if your business is not a sole trader. Be sure that the name you wish to register is not already registered and does not infringe on any existing trademarks.
3. Insurance, registration, and tax payments
Starting a business legally in Australia requires an Australian Business Number (ABN). An ABN is a unique 12-digit number used to identify a business. Tax File Numbers (TFNs) are the first step to getting an ABN in Australia.
There is no difficulty in completing online TFN applications. The unique identification number ABN enables businesses to register names, send invoices, place orders, and file GST claims. Also, in Australia, every employee and worker must have worker’s compensation insurance and third-party personal injury insurance.
4. Registration of a domain name
Obtaining a .com.au address is only possible if you are a registered Australian corporation. Once you have a business name and ABN, you can make this process step. Your domain name should be relevant to your business in some way and easy to recognize.
Although the perfect domain might be the perfect match for your killer business name, you must ensure it is not already taken. Several websites are available that can help you out. The .au Domain Administration Ltd (.auDA) website can reveal domain names that have not been taken. You may find it useful.
5. List your sources of funding
As a startup, you’re most concerned about cash flow. It doesn’t matter how good your business plan is initially; you don’t need to spend money to maintain your lights. It’s important to know the resources available for the initial growth process.
State-specific programs exist to help start a business, but the government doesn’t offer many grants. The Small Business Development Fund, for example, will allow you to apply for a $20,000 grant when starting a business. Also, grants are available for marketing and sales, equipment purchases, import and export, and employment opportunities.
Launching your first small business can be one of the most rewarding experiences of your life. If you follow these steps as soon as your small business opens its doors, you will set it up on the path to success.