Starting a business? 3 legal boxes you need to tick first.
Published 24 Oct 2017
Starting a business is an exciting process, especially if it's something you've been dreaming about for a long time. There are, however, a number of legal loopholes individuals must go through before they can finally open the doors to their new company. If you're unsure about how to proceed, it might be wise to seek legal help to ensure you're doing everything correctly.
Let's look at the top three legal boxes entrepreneurs must tick before they're officially in business.
1. Australian Business Number
Before a company can be legally considered as such, it must first be registered with the government. In order to do this, you must get an Australian Business Number (ABN), which you can do for free through the Australian Business Registrar's website. This is an 11-digit number that will be used to identify your business.
Companies can register for their ABN at the same time they register for their business name - these two are often confused with one another, but they are separate registrations.
2. Tax registration
Once you've registered your ABN, you must set up various tax and business registrations. The following are some taxes that businesses may be required to register for:
- Tax file number (TFN)
- Fringe Benefits Tax (FBT)
- Register for Payroll Tax
- Goods and Services Tax (GST)
- Pay As You Go (PAYG) withholding
New business owners must also understand their requirements with regards to more basic taxes, such as income, land, capital gains, stamp duty and international tax. Business owners who feel unsure about what taxes they need to register for should get in touch with their accountant or a Parramatta lawyer to help them.
As you surely already know, running a business requires a certain measure of compliance with established rules and regulations. Therefore, it's likely that you'll need to apply for certain licences before you're legally allowed to be in business.
Luckily, the Australian Business Licence and Information Service (ABLIS) is designed to help you figure out what licenses you do and do not need. The required permits will vary from state to state, so it makes sense to do your research beforehand - or potentially even seek the help of a commercial lawyer who knows the industry well.
At Malouf Solicitors, our team of experienced legal professionals is ready to help new business owners navigate the waters of registering and establishing their organisation. For more information about how one of our Parramatta commercial lawyers can assist you, reach out to a representative today.
Please call us on 02 8833 2000 to speak with a lawyer
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