Preparation and Planning: 5 Legal Matters to Check Before Starting a Business in Australia
Starting a business is a complex process, and no matter how dedicated you are to turning your dream into a reality, there are plenty of hoops to jump through and red tape to dodge before you can get things up and running. This is particularly true when it comes to the legalities of starting your business. That's why we've put together this quick reference guide to help you navigate the murky waters.
The Structure of Your Business
The first thing to decide on is the structure of your business. Will you be a sole trader or are you considering a partnership? You may be ready to jump in at the deep end and register as a company. Regardless of your decision, you will need a solid team of local experts to support you. If you’re in Albury-Wodonga, for example, it’s worth lining up a financial advisor, accountant, and business lawyer in Albury to discuss your options and guide your decisions.
Your ABN and Other Registrations
Once you've decided what kind of business you will launch, it's time to register your ABN. Depending on how you’ve structured your business, you may also need to register a business name. Your business lawyer will be able to help you determine whether you can legally use the name you want. They’ll also be able to help you with any other registrations you may need, so be sure to seek professional guidance on what's necessary.
Insurance policies
You'll also need to take out any insurance policies required for the type of business you'll be running. Your lawyer will be able to help you with the specifics here, but as a general rule, public liability insurance is always a good place to start. This coverage ensures you have financial backing if anything goes wrong. It can save a business owner hundreds of thousands of dollars. In some cases, it even keeps business owners from serving jail time after something goes seriously sideways. So this is certainly an insurance type to consider.
How You'll Handle Finances
Once you've covered the basics, it's time to think about how you'll handle business finances. Whenever money is changing hands, legal requirements must be met, so it's a good idea to do the groundwork upfront to ensure you're compliant.
For example, if you're operating as anything other than a sole trader, you will need a separate company bank account. You may also wish to automate your invoicing, but this is more for convenience than legality in most cases.
Taxes and GST
Finally, although nobody likes paying taxes, you don't get to escape them purely because you run the show now. As such, finding a good tax accountant should be one of your top priorities once you're up and running. Not only will they save you a lot of stress in managing your money, but they will also ensure you don’t end up in hot water with the ATO – a place no business owner wants to be.
While the information in this article is general and should never be taken as personal advice, we hope it has provided a good starting point for dealing with the legalities of launching a business in Australia. If you have any further questions, we strongly suggest seeking professional assistance from the abovementioned experts. Good luck with the launch of your company – it's hard work, but it's certainly worth it in the end.