A business usually begins with an idea, but you also need to find out what you want to accomplish and what suits you. Owning a business makes it possible for you to turn your passions and skills into a profitable venture. If you think the business you put up can deliver something more effective, faster, and more affordable than other companies, then it is time to create your business plan. You also need to register a business to make it an official thing.
What Type of Business Do You Have?
After settling on your business idea and plan, determine if you are operating as a sole trader, a company, a partnership, or a trust. Each one of them comes with different admin responsibilities, tax obligations, and legalities. You may start as a sole trader and grow from there. If you decide to hire employees, there are also other factors to consider.
Make It Official
It is a must to register a business officially because the government needs to know what business you are operating. You have to register your business name and your Australian Business Number (ABN). After applying for them, find out about relevant permits and licences to make sure that you are running your business legally. You may also trademark your business name as protection to your brand, although it is not mandatory.
Register Your ABN
Register an Australian Business Number (ABN), which consists of 11 digit numbers that will help identify your business to the buying public and the government. You can validate your legitimacy with your ABN when accessing tax benefits, when invoicing and ordering, as well as when obtaining a domain name. You can register a business and ABN separately or together.
Your ABN ties your business to all forms of taxes like goods and service tax (GST) and payroll tax. After sorting out your ABN, you can then register your business name. But, know that it does not grant you exclusive use of the name. If you want to own your business name exclusively, register it as a trademark.
Register Your Business Name
For operational recognition, you need to have a business name. Aside from making your customers identify you with it, your business name also gives you a distinction from your competitors. How to register? Register it through the ASIC (Australian Securities and Investment Commission), which comes with a fee. The ASIC has a tool that you can use to find out if someone has already registered your chosen business name.
If you choose to use your name when trading, there is no need to register it as your company name. But, if the business name you are using includes your name, then you need to register it, for example, “Kate’s Clothing Apparel.”
If you decide to trademark your business name, search IP Australia to know if there are similar existing trademarks. Trademarking is beneficial for your business, especially for legal security, which means you can legally challenge those copycat businesses that disrupt your income or reputation. Trademarking gives your business exclusive rights to your logo, slogan, and business name.
After you register a business, you need to display the name of your company in every transaction you conduct. Your business name should always be open to the public. Also, display the ABN of your business on any documents that you use and publish, and keep your company details always up-to-date.