Now that you’ve read our previous blog on accounting tips for starting new businesses, it’s time to look more closely at exactly what registrations you need to start your business.
Fortis Accounting Partners can help you through this application process; so if you need any extra information on the following – or if it’s too technical for you to understand thoroughly; please don’t hesitate to get in touch with us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
All businessesben
There are a few key registrations that all businesses need to have before they can conduct business properly. It doesn’t matter what type of business you are or what you are trading, you will require the following:
Australian Business Number (ABN): If your business doesn’t get an ABN, other businesses you deal with will have to withhold 46.5% from their payments to you. This is why it’s best to get an ABN regardless. If you are required to register for GST you must also get an ABN. It’s also important to keep in mind if you hire freelancers, it’s a good idea they have their own ABN as well so you don’t have to withhold almost half of their payment for tax.
Tax File Number (TFN): All businesses in Australia need a TFN. If you are a sole trader you can use your individual TFN. Partnerships, trusts and companies need a separate TFN for the business so it’s important to register for this if you’re starting a new venture.
AUSkey: An AUSkey will help you deal with the ATO online and allows you to securely access and transact online with many government agencies. You can access the ATO Business Portal, this is where you can lodge your Business Activity Statements (BAS) online if you are doing so yourself. You can also check your tax account balance and update your details.
Buying and selling goods and services
If you are entering into the buying or selling of goods, you must consider the following:
Goods and Services Tax (GST): If your current or expected GST turnover is $75,000 or more, then you must register for GST. For non-profit organisations, the threshold is $150,000 or more. If your turnover is less than the threshold, registering for GST is optional. However, if you provide taxi travel you must register for GST regardless of your turnover. Generally, if you are registered for GST you will include GST in the price you charge for goods and services and claim credits for the GST included in the price of goods and services you buy for your business.
Employing people or withholding from payments
If you intend to employ people or withhold payments, you will have to register for the following:
Pay as you go (PAYG) withholding: You must register for PAYG withholding if you make payments you have to withhold from such as payments of salary of wages for taxation purposes.
Fringe Benefits Tax (FBT): Some businesses provide benefits to their employees such as private use of a work car or entertainment. If you provide any fringe benefits you may have to pay fringe benefits tax. The best way to check if you are eligible is to check out our FBT blog. It is recommended you register as soon as you decide to provide any fringe benefits.
Special circumstances
There are some special circumstances when you must register for specific things. These include:
Fuel tax credits: If you use eligible fuel in your business (other then for cars travelling on a public road), you can claim fuel tax credits. To register for this you also need to register for GST.
Wine equalisation tax: This one only applies to wine manufacturers, wholesalers and importers. If you fall into any of those groups you must register for and collect wine equalisation tax.
Luxury car tax: If your business sells luxury cars you must register for and pay luxury car tax. Please note you must also be registered for GST.
Non-tax registrations
Business name: If you are staring a business you should register for a business name. This will help your business be more identifiable.
Companies: If you are going to run your business through a company, you must register your company and get an Australian Company Name (ACN) before you can get your tax registrations.
State Government Licences: Depending on what business you start, you may need a licence to operate which is usually issued by your state government.
Council permits: You may also need to apply for council permits to operate your business, for example, if you will be selling food.
Each individual business will need to register differently. If you have any questions about what you need to do with regard to registrations, please don’t hesitate to get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
