what basic steps to open small business... and LLC it?
what are the Basic steps to open a small business ?
- Anonymous1 decade agoFavorite Answer
The first thing you need to do is decide if you're gonna be a sole trader or be an actual company.
If just sold trader, you'll need to apply for an ABN (Australian Business Number) under your own name, this can be done from the Business Register website (www.abr.gov.au). The questions there are pretty straight forward, just before with the 2 questions asking whether or not you want to apply for GST and PAYG.
You're only required to register for GST if you estimate your annual income to be $75,000+. If you think you won't reach that amount, then the answer for you would be no.
Another question from the application would ask whether or not you want to apply for PAYG (Pay As You Gain). This' basically asking you whether or not you'll be employing anyone to work for you. If yes, you'll need to be answering 'yes' for this question, which means when you pay your employees wages, you'll need to withhold the tax amount on their behalf and pay it to the tax office every quarter (3 months). If you don't intend to employ anyone, this is just another straight out 'no' answer.
Whether or not you answer 'yes' or 'no' for these questions, it can always be changed later on down the track if you change your mind when your business circumstances changes.
And as for if you want it to be an actual Company, this is best done through your Accountant. If you don't already have an Accountant and you want to set it up as a Company, it is best advised to find yourself an Accountant, as Companies are a bit more complicated to deal with both setting up and when it comes doing tax returns.
The key difference between a soletrader and a Company is that if sole trader, whatever profit you make from the Company goes in straight as your income as if you're working for an employer, which you'll be paying tax depending what tax bracket your profit puts you into. For example, if your overall annual profit from the business is $77,000 a year, you'll be paying tax at the $77,000 tax bracket just like someone who works for an employer and gets paid $77,000 a year, which is 40% this year, where as if it was a company, no matter how much profit the company makes, it'll always be 30% the company's paying.
Hope this is clear enough, good luck with your business...
- hirebookkeeperLv 61 decade ago
Go to your state's website and search some of these words: new business, entrepreneur, business taxes, corporations. Read up on the best type of business setup for your needs. An accountant or attorney can help, but they will charge high fees to help you. I set up my companies and those I work for online and via fax.