Basic Requirements When Setting Up a Business

by frank-stuart
10OCT

Are you thinking of running your own business? Thorough planning is the most important part of getting your dream of business ownership off to a flying start. Along with the legal considerations, issues like appropriate financing and market research need to be addressed.

Legal Issues

One of the first things you’ll need to do is decide on your business structure. Some of the most common business structures are sole trader, partnership, company, and trust. Each structure comes with different requirements for formation, as well as different tax and legal compliance requirements.

You’ll need an Australian Business Number. You’ll also need to register your business name with the National Business Names Registration System. You might also need to register for Fringe Benefits Tax, Pay As You Go, and GST, as well as obtain a separate Tax File Number for your business.

Depending on the goods you sell or service you provide, you might be required to obtain licencing from a government body or authority before you start. You might also need to obtain local council approval. This will depend on the zoning rules, usage restrictions, or town planning rules at your place of business, in addition to the type of business activity you’ll be carrying out.

Finance

Your finance strategy should take into account how you’ll cover major overheads such as your lease, stock purchases, supplier payments, staff wages, and business insurance premiums.

Having access to sufficient finance is crucial for the health of your business, and for sustained growth. Check with your bank about different types of finance. Where appropriate, ask your accountant or financial advisor about other options for finance.

Research

Thorough research is a solid basis for the development of a workable business plan. With the right research, you can find the best location for your business. You’ll be able to understand your operating environment and the relevant market conditions, as well as your competition.

Research can show you how to market your product or service, your position within the market, and how much growth is realistic. Research might also help you choose the best business structure, and help you identify potential risks in your business.

Duties and Obligations

  • Licensing, Permits, and Reporting – Some of the most obvious obligations of new businesses are registration, licensing, permits, and tax reporting. For better tax compliance, you should keep accurate records from the start, and report on your earnings and tax as required by the ATO.
  • Employing Staff – If you’re employing staff, you’ll have certain obligations with respect to your staff. These relate to issues such as payment of fair wages, work health and safety considerations, the fair treatment of employees, workers’ compensation, superannuation, and taxation.
  • Working Out Your Obligations – It’s vital that you’re aware of all relevant duties or obligations as a business owner. Duties and obligations can be found in your state/territory law, federal law, and employment contracts or industrial awards and agreements. Seek professional advice if appropriate.

If you’re thinking about starting a business, consider the sports and fitness industry. Sports, such as dance, physical education, sports business and sports coaching, are industries with strong potential for business growth. The Australian College of Physical Education provides a number of recognised sports and fitness courses.

Visit the ACPE website >

study at acpe » make a course enquiry







Please leave this field empty.