small business

[weisyboy]

i am after some advice on registering a small business.

i have been doing property maintenance for a couple of years to see if i could get enough work and am now wishing to register a bussiness and do it properly.

what steps do i need to take?

how hard is it?

costs?

what should i look out for?

any other infop and advice.

thANKS BOYS:2tsup:

[Calm]

Carl

I thnk the best you could do is ask your accountant - in Victoria to register a small business using your name I.e. David Evans & Co is easy. to use another name is not so simple.

With GST if you want to do BAS statements and claim gst on your purchases you can or if your income in under $50,000 per year you need an ABN but dont need to register for GST. I would register regardless as you can then claim all gst paid on purchases.

Your accountant should advice you if it is worthwhile because if you continue to have more expences than income - you make a loss every year - the ATO will tell you its a hobby and not a business.

There must be a reasonable chance that you will make a profit otherwise you do all the registration and stuff for nothing.

In short talk to your accountant.

[nev25]

I agree with Calm talk to your accountant
You don't actually register a business only a business name
This may help

http://www.business.gov.au/Business+Entry+Point/Business+Topics/Registration+and+licences/Register+your+business+or+company/Register+your+business+name.htm

[weisyboy]

thanks guys i will contact my accountant soon to arange an apointment i was just want ing advice befor i go as they charge threw the nose i i would like some info to start with

[dazzler]

Hi

here is all the info you need to register a business.

http://www.business.vic.gov.au/BUSVIC/STANDARD//pc=pc=PC_50021.html

i did mine in nsw and it was as easy as

1. Choosing a name

2. checking its not registered to someone else by going here;

http://www.abr.business.gov.au/(4in5fxb4phoqeu55jhz0iqqn)/main.aspx

3. Filling out the application, attending the shopfront and paying my money. You will need your tax file number if you are a sole trader which most small businesses are.

4. Register for GST with the tax office if you think you will bring in over $75k or are going to buy plant or vehicles so you can claim GST credits.

good luck

[Brown Dog]

if you wanna do it properly. Im assuming you will be setting up as sole proprietor and have no employees....this keeps it a bit simpler


what steps do i need to take?

1st thing to do is register a business name.

To help decide use the ASIC web (http://www.search.asic.gov.au/gns001.html) site to search for available names...ie this search will give you an indication if the business names you are considering are not in use or reseved by someone else.

When you have a name/names picked out have a look at the QLD office of fair trading web site at the registering a business section (http://www.fairtrading.qld.gov.au/OFT/oftweb.nsf/web+pages/527E944BDA96270B4A256BF800054473?OpenDocument&L1=Forms). There will be a form to fill in....I think you can either post it in or turn up in person, there will be some fee for this....about $120 (last time I regiserted a business).

2nd thing would be...get yourself a ABN and register for GST...check out the ATO web site for that.

3rd go to your bank and open a Bussiness bank account...for this you will need your business registration certificate.

4th Go see someone about insurance.....this will be very important if you ever pick up work for other businesses, they will want to see that you have Public liability coverage. You should have it anyway...these days

5th...you will probably learn more as you go along about what is required in terms of OH and S....ie some people you work for may require you to provide evidence of certain training etc before they will hire you




how hard is it?

easy :D



costs?

Business rego has a fee of around $100.... as i mentioned

ABN and GST....free

Bank account....Free

Insurance.....depends on what coverage you get...last policy i had was around $1000 per annum....but that included public liability and covered my tools for theft



what should i look out for?

If you wanna save some money on accountants....do a Book keeping software course, such as Quick books or MYOB....and do your BAS yourself. Its confusing to start with but if you do have a good acountant they should be happy to help with any questions.

Speak to your accountant about PAYG tax and how much you should set aside to give to the Tax man...this will vary over time. I think the last return i did for my business i was paying about 11%...and i still got some back :D

Then just get your account to do your tax return...this will save you heaps on the amount of tax you will pay....



any other infop and advice.
keep reciepts for any busisiness related expense

hope this helps

[weisyboy]

thanks wil look at all those websites and ahve a good think.

[Tonyz]

if you dont fancy doing your finances use book keeper. We have one, visits us at home, does all the stuff the accountant wants emails it through to acc and hey presto, big saving in acc fees

[weisyboy]

bookeeper sounds like a good idea will look into that to

[Planned LScape]

Bear in mind you may still have to register for GST if a monthly earnings is calculated to end up over $50,000 at years end anyway.

Make sure you have some moolah saved up before you set out, for things like setup, tools, advertising, signage, and for quiet times. The 1st couple of years may be tough but work hard and tough it out and you'll be fine

[Sebastiaan56]

thanks guys i will contact my accountant soon to arange an apointment i was just want ing advice befor i go as they charge threw the nose i i would like some info to start with

If you are planning to have the turnover then spend the money on good advice. You wont regret it. Structure is very important. Accountants are like tools / cars etc, if you are going to race you need good gear.

[dazzler]

Bear in mind you may still have to register for GST if a monthly earnings is calculated to end up over $50,000 at years end anyway.



GST registration is now $75,000 :2tsup: minimum.

[AlexS]

GST registration is now $75,000 :2tsup: minimum.
When did that happen Dazz?

[flynnsart]

When our business was going, I got the accountant to do the tax for the first year, then did it ourselves. I wish we had the internet back then, there is even a program you can download from the tax office to help keep your records, called e-record6. We have started going through the process to start up business again. You really do need to get organised and make sure you keep your records up to date, dont fall behind or it will be a nightmare.

Donna

[bricks]

GST registration is now $75,000 :2tsup: minimum.


Gst rego, i was just told is calculated on your turnover- not your profit. I got caught with this from last finacial year, now have to do gst.

[Calm]

Gst rego, i was just told is calculated on your turnover- not your profit.

GST Registration is on your Turnover - over $75,000 per year and you must register for GST. Under $75,000 and you should get a ABN so that customers dont withhold nearly half of there payment.

I would register fro GSt anyay because you get to claim the GST back on all your purchases. It means you need to add 10% onto your sales to forward to the ATO but most of your competitors are doing that so that shouldnt make you uncompetitive.

BAS Statements are easy to do. Keep a spreadsheet or "cshbook" with a column at least 4 columns, 1st Description, 2nd Bank (total of purchase), 3rd GST on purchase, 4th Ex GST figure.

Use a seperate page for expences and Income.

Every 3 months add up the GST column multiply by 11 and put the GST figure (no cents) at 1A income and 1B expenditure and the grossed up (multiplied by 11 figure) in there respective boxes.

If you dont register for GST 10% of all your purchases is wasted because you cant get that back from the ATO, and you dont have a choice about paying it when you buy something.

[weisyboy]

GST Registration is on your Turnover - over $75,000 per year and you must register for GST. Under $75,000 and you should get a ABN so that customers dont withhold nearly half of there payment.

I would register fro GSt anyay because you get to claim the GST back on all your purchases. It means you need to add 10% onto your sales to forward to the ATO but most of your competitors are doing that so that shouldnt make you uncompetitive.

BAS Statements are easy to do. Keep a spreadsheet or "cshbook" with a column at least 4 columns, 1st Description, 2nd Bank (total of purchase), 3rd GST on purchase, 4th Ex GST figure.

Use a seperate page for expences and Income.

Every 3 months add up the GST column multiply by 11 and put the GST figure (no cents) at 1A income and 1B expenditure and the grossed up (multiplied by 11 figure) in there respective boxes.

If you dont register for GST 10% of all your purchases is wasted because you cant get that back from the ATO, and you dont have a choice about paying it when you buy something.

i have no idea what you just said but ok:2tsup:

i have done some working out and on average 75% of each job is materials.
so if i was to charge $2000 for a fence $1500 will be spent on materials and only $500 will be wages/profit. on average.:U

[dazzler]

When did that happen Dazz?

Hey Alex

I have no idea :D but was that way at least last November :)

[Rosie21]

Hi Carl
The initial stages have been covered in earlier posts (business name registration and book-keeping etc). I have setup a painting business with my husband 2 years ago and as I have an Accounting degree it was a little easier for us. You will need to look into license requirements and possible Association memberships (this will add to your credibility as a business owner). I know for painting we needed to get a BSA licence and we became a member of the Master Painters Association. Also, don’t underestimate the importance of the type of business structure you set up. This is one of the most critical at the initial stages and is hard and expensive to change later on. You need to have a long term view of where your business will be and assume that it will be highly successful with lots of money coming in. This is especially important if you have a family and assets (or plan to later on). The SECOND stage requires that you look into the most important thing for every single business – cashflow. This is the life blood of every business. The first 2 years of business are the hardest especially when you are trying to establish a name for yourself, get regular customers, and compete with the many other businesses out there doing the same thing you are. If you require a business loan, you will need to write a business plan (you can get someone to write this for you for a couple of hundred dollars). I would recommend you write it yourself (the banks will also favour this) as you can nut out exactly where you want to be and how you are going to do it. There is an abundance of business plan books that can help you (I got a book from QBD titled ‘Business Plans Made Easy’). The hardest part is dealing with the finances and your accountant may help you with this. The THIRD stage requires that you look into how you will run your business on a day-to-day basis (this is one of the expensive exercises and costs can accumulate really quickly). Will you have business premises or a home office? You will need to have a computer, printer, fax, email and phone line. You will also need computer software. You will need to get business cards made up as well as letterhead stationery. I would recommend a PO Box if you have a home office and never give your home address to the public. How you portray your business is especially important and a certain level of professionalism is required.
<O:p</O:p<O:p</O:p
The FOURTH stage you will need to decide if you are going to have a website and how you will market to your target customers. There are a range of different marketing tactics out there that you will need to look into. There are also some good service businesses promoting trade businesses to the general public. See below for some handy websites. Finally, as a final note I mentioned earlier that Cashflow is the life blood of every business. The next critical component is the Record-keeping and Organisation of the business. It is crucial that you organise your work area in a way that you can find things easily. For example, keep all receipts for a particular quarter in the one place - an envelope folder (from OfficeWorks). Useful websites:
search.asic.gov.au
smartsmallbusiness.qld.gov.au
ato.gov.au
homeimprovementpages.com.au
Hope this helps.

[weisyboy]

getting regular customers and cashflow will be no problem as i said i have been doing this for a coule of years and have a good name and have many repeat customers and recomendations.

i have all the tools and equipment required so the only initial outlay will be for the fees and charges asociated with registration, accountant etc.

will have a look at those websites you gave me.

[HappyHammer]

if you dont fancy doing your finances use book keeper. We have one, visits us at home, does all the stuff the accountant wants emails it through to acc and hey presto, big saving in acc fees
SWMBO is a bookeeper (MYOB and Quick Books) and she is charged out by an accountant by the hour to thier existing customers (almost all small businesses) as a service to reduce cost and ensure it's done properly.

SWMBO visits many people who decide to do it for themselves and they either fall way behind and incur fines for late BAS returns or they stuff it up and it has to be done again.

My advice would be for the price it is well worth paying for this to be done properly by a bookeeper as it will reduce stress and highlight issues early. Just beware as there are plenty of people out there who say they are bookeepers but are really just winging it. SWMBO has had to sort out a couple of messes created by these people also.

HH.