| The thought of starting a business is exciting. It can | | | | most popular; this does not mean it is the most ideal. |
| also be daunting once you start thinking about all of the | | | | To determine which type of business you will be you |
| requirements that go into opening your own company. | | | | need to know how Australia defines each category |
| In Australia, as in most countries, there is a right way | | | | and what they mean to you. For example, the Sole |
| and a wrong way to get your business started. It is | | | | Trader category means that you and only you are the |
| important that you know the laws and regulations of | | | | business. This means that if something happened to |
| the state you are opening business in to ensure that | | | | you that made it impossible for you to carry out |
| your company starts out on the right foot. Here are a | | | | business as usual, your business stops. If you have a |
| number of things to avoid before you get started. | | | | family to support or loved ones that you are trying to |
| Ignoring Licensing Requirements | | | | take care of, or even a silent partner, under the Sole |
| Australia is a country that has many rules and | | | | Trader status there would be nothing they could to do |
| regulations when it comes to starting a business. One | | | | to salvage the business or make any money with it. |
| of the most important rules is whether a company | | | | Not Getting the Proper Tax Numbers |
| needs a license to operate. Depending on the type of | | | | Regardless of the type of business you are going to |
| business you are considering starting in Australia you | | | | start in Australia, you will need to get an ABN and TFN. |
| need to know if there is a license, permit and or any | | | | Chances are that if you have been working in |
| registration that you need to take care of before you | | | | Australia you already have a TFN (Tax File Number,) |
| open the doors. | | | | but you will need to register to get your ABN |
| There are two main types of license in Australia: | | | | (Australian Business Number) and you will also need a |
| operating and occupational. Please keep in mind that | | | | separate TFN if you are operating as an entity other |
| these are generic terms that are meant to be more | | | | than a Sole Trader. Both of these are necessary for |
| descriptive, not concrete. It is important to note that | | | | tax reasons. |
| you may not need any permits or license for your | | | | Thinking the Name of Your Company is Not Important |
| business. However the only way to know is to do the | | | | In Australia it is illegal to register the same name as |
| research to make sure. | | | | another company within the state. This means if you |
| The most ideal way to find out if your business is | | | | are opening up in Tasmania and the name of your |
| going to need one is to contact the BLIS (Business | | | | company is "Wallabe Darn" and there is already a |
| License Information Service) website for your state. | | | | "Wallabe Darn" in Tasmania you are going to need a |
| To find the website for your state you can search for | | | | new name... or open your doors in another state. |
| BLIS and the name of the state. | | | | These are just a few of the things you should avoid |
| Forgetting to Establish Business Structure | | | | as you are starting your business in Australia. |
| Similar to the United States, Australia categorizes | | | | Remember that it is important that you know the |
| businesses in 1 of 4 ways. Sole Trader, Partnership, | | | | regulations and laws in your area. This will help prevent |
| Trust or Company are the four categories Australians | | | | many legal issues down the road. |
| use. By and large the Sole Trader category is the | | | | |