There are many reasons to starting a business in Australia. As long as you follow the rights steps for setting up your business , then you will set yourself up for success. There are three main types of businesses you can start in Australia and certain benefits to each. I have seen many new business fail miserably, and I have seen some start-up Aussie businesses become very successful. The thing that the successful Australian businesses have in common is that the founders were passionate and, therefore, motivated. Don’t start a business out of the sole desire to make money. Donald Trump and Warren Buffet have both said do what you love and the money will follow. If you love to cook, then open a restaurant. If you’re a lawyer, then don’t open an online store. Got it? Get it? Good!
First, think long and hard about what you love to do. Later on you can figure out how to make money from the one thing you are truly passionate about. If you’re an artist, then paint or practice whatever medium of self expression you love. If you’re smart enough to follow your dreams, then you will be smart enough to figure out how to make money from it.
A good place start looking around for business ideas is in your own house. Go ahead, look around the room you’re in and find an area that has a problem that needs to be fixed or causes irritation or frustration. That unorganized stack of business cards in the corner, CD’s everywhere (itunes, ipod, etc.), dirty window, shelves that are too high, pile of laundry in the middle of the floor, etc. Everything has potential for the next great thing.
Next, you will want to decide which type of business to open in Australia. You can chose from sole trader, partnership, and company. These are the three ways to start up a business in Australia and here are the tax benefits of each.
A sole trader is the least expensive and easiest business to start in Australia. A “sole trader” status business is not a separate entity for tax purposes. Therefore, you are taxed at the same rate as your personal income tax. This may be good or bad, depending on how much you earn with your business . In Australia the business tax is a flat rate of 30%, while personal income tax is a progressive rate system. The highest rate for personal income tax in Australia is 45%. If you would be in a higher tax bracket, then it makes sense to form your own company, but if you don’t plan on making much money the first year then register your business as a sole trader so you pay less taxes.
If you register as a company in Australia, then you have a completely separate entity that is able to acquire property, invest and pay taxes on its own. Another huge benefit of registering a company is that it separates your personal assets from that of the company for liability reasons. In other words, if you get sued they can’t get your personal house, car, or anything else that is under your name (as opposed to the company name).
You can also register a partnership in Australia with at least one other individual or company. With this, the tax benefits can vary and you may end up splitting the taxes. It all just depends on the individual situation.
Australia is one of the best countries in the world, according to the World Bank, for the total ease of doing business . It is very easy to start a new business , hire employees, and quick to process paperwork and licenses. These are all reasons Australia is a top destination for business excellence.
After you have your business idea, then you will need to register your business and get an ABN (Australian Business Number). Register the business on the state level. Search Google for “your state” business registration.
The next step is to open a business bank account and a merchant account. These will allow you to receive payments under your business name. This is only not required if you are planning on getting paid with cash or cheques made out to “Your Name” (substitute your actual name for “your name”, mate). If you will be building a website, then go register a domain name, but never use GoDaddy ever! I would recommend NameCheap.com. Hire someone to build your website (especially if this is important to your business ) and focus on running your business .
The final and never-ending step is to promote, promote, promote, then you should probably focus some time on marketing, and then maybe a little bit of time and money on PR. Seriously, everything should be focussed on promoting and marketing your business however you can.