Thinking of starting a business.

If your thinking about starting your own business there are important decisions you need to make.
For example;

• what type of business should you start?
• will it be a business or just a hobby?
• what do you need to do before you start?
• do you need a business plan?
• are you really ready to start a new business?
• what financial information do you need?
• will you need an Australian business number?
• will you have a tax responsibilities?

At this stage of your business life cycle, it's important to think about, understand and plan your business tax needs. Time spent now will help you manage your tax obligations when you start your business and make the right decisions.

Starting your business.

When you start your business, you need to consider tax to get your business off to a good start. For example, do you know:

• what records you need to keep and how to set up a record keeping system?
• how goods and services tax (GST) works?
• what you need to report in your tax return?
• what deductions you are entitled to claim?
• how often you have to lodge you business activity statement (BAS)?
• how to pay your tax?
• how working from home may affect your tax?

 
Running your business.

As your business grows and changes you need to be aware of how your tax obligations may also change. For example, do you know:

• how to change your business structure?
• what changes when you have employees?
• how pay as you go (PAYG) withholding works?
• you have to pay super for employees?
• how to pay fringe benefits tax (FBT)?
• how to treat payments you make to independent contractors?
• how to work with the ATO electronically?

 
Ceasing your business.

You need to tell the ATO if you're affected by the following:

• you have ceased trading altogether
• you are registered to operate a business but you've never traded
• you have sold or transferred ownership of your business

To tell the ATO you're no longer in business:

• phone the ATO on 13 28 66 between 8:00am and 6:00pm, Monday to Friday, or
• If you have a digital certificate, you may cancel your ABN online at www.abr.gov.au

Online cancellation is fast and secure, and your cancellation details will usually be updated within 24 hours.

What to do next.

Contact Taxwise on 9248 8124

About the Author

Warren Kruger is an Australian Tax Specialist and Advisor.

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