As a qualified tradesperson, you would have the skills and knowledge to know how to run your own business and be your own boss. Here’s a tip, it takes more than 6 years working your trade to know how to run a business.
The decision to start your own business is a huge step, it’s important that you know your legal and financial obligations before you start up, do your research and check that your idea is feasible and you’re not getting yourself into something you’ll regret.
You need to choose the best structure for your business, what is going to be most beneficial from a taxation and public liability point of view? Will you register a Company, a Trust, go into Partnership or just carry on as a Sole Trader? These decisions need to be investigated and discussed with your Tax Agent or Financial advisor.
You will also need to obtain an ABN. Businesses who engage your services are required to withhold 46.5% of your payments if you cannot provide them with an ABN. These funds are forwarded to the ATO on your behalf to go towards your tax liability. So you had best get that taken care of!
If you anticipate your income to exceed $75,000 in a year, you will need to register for GST. Registering for GST will also enable you to register for fuel tax credits – this can come in handy if you’re in the earthmoving business or your income is derived from the use of vehicles & machinery.
Registering for GST also requires you to submit monthly or quarterly Business Activity Statements and remit the GST charged on your services to the ATO – minus the GST you pay on materials, supplies and other outgoings needed to run your business
Keeping your paperwork in order! Now this is the most common issue small businesses have. Keeping good records.
Maintaining good accounts isn’t just about having all your figures ready for the Taxman come June 30. If your books are in order on a regular basis, you can actually USE those figures to assess how well your business is performing – and effectively plan the future.
If you’re considering going out on your own, and need a helping hand in relation to what steps you need to take, get in touch with us, we will happily set your feet on the right path!!