STEP 1: CHOOSE YOUR STRUCTURE
There are four structures:
- Sole trader: You are the sole owner of the business which means that you are responsible for all aspects of running the business.
- Company: A commercial business or entity that has a separate legal existence to its shareholders
- Partnership: When more than one person and/or entities run a business together, but not in the form of a company.
- Trust: An entity that is in possession of property, income, or any other assets for the benefit of a third party.
STEP 2: CHOOSE A BUSINESS TYPE
There are many business types you can choose from.
Some of the main ones you can choose from are:
- An online business
- A franchise
- An independent contractor
STEP 3: REGISTERING YOUR BUSINESS OR COMPANY
You cannot legally start a business in Australia unless you own an ABN or ACN. Your ABN is unique only to your business and acts as a government identifier for the business.
An Australian Company Number or ACN is the registration number issued to a new company registered in Australia by the Australian Securities and Investments Commission (ASIC) for monitoring activities within the structure of the Corporations Law of Australia.
An Australian Business Number or ABN is issued by the Australian Taxation Office (ATO) to all entities that are in business including sole traders, companies, trusts and partnerships.
STEP 4: WEBSITE AND SOFTWARES
One of the most crucial steps is to secure a domain name and developing your company’s website.
Another crucial choice is strategically selecting software that can make your life simpler as you grow. Nearly every company should use a CRM to keep track of important client info in one central source and a bookkeeping software to keep finances in order.
STEP 5: FINANCE
Starting up any kind of business requires an infusion of capital. There are two ways to acquire capital for a business: equity financing and debt financing.
STEP 6: REGISTER FOR TAXES AND HEALTH AND SAFETY
You must register for the correct taxes to avoid any potential legal implications. The taxes you must register for depends on the type of business you choose to start, with some pertinent to every type and others only required for certain types.
STEP 7: UNDERSTANDING AND IMPLEMENTING CONTRACTS
You may enter verbal and written contracts with other businesses when doing business, individuals when they become new clients and when you onboard employees.
One of the most basic building blocks of good business is having a valid and concrete contract. Contracts, by nature, are meant to be a safeguard for both parties of the business agreement.
By understanding the contracts you enter into, you’ll be better able to negotiate contracts that work for you. However, it’s still important to get professional advice to fully understand your obligations.
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