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Thread: How to start up a business

  1. #1

    Join Date
    Aug 2005
    Location
    Melbourne, Victoria
    Posts
    1,635

    Default How to start up a business

    Hi everyone,

    I'm currently doing a course in massage therapy, and i'm looking to specalize in pregnancy massage...(along with general massage for women)

    Anyway, i wanted to get started setting up the biz so that as soon as i'm qualified i'm ready to go.

    I'm already registered as a sole trader for a previous job i had, so i have my own ABN

    I've thought of a name that i want, and registered it tonight (somebody has something similar in a completely unrelated field, so i hope they let me have it).. I registered it as a trading name though.

    What is the difference between registering it as a trading name or as a company?

    If somebody sues me (i'm planning on taking out insurance once i become a member of Australian Massage Association), and i'm a sole trader, does that mean they could have access to my assets (my house etc)? If i register as a business does that mean they would sue the buisness and i as a person would be protected?

    I wasn't registered for GST as a sole trader, but i'm assuming i might have to be for this one. How much do you need to make a year before you have to register?

    I'm looking at registering my trading name as a domain name with a general website.. Any other ideas of what could be good to have to get this started (besides business cards)?



    Is it worth paying an accountant or a business advisor to go through how to set up a company etc? Or can i found out the info myself?

    It wont apply this tax year as i won't work before then, but is there anything i need to know when keeping records for tax to make tax time easier (haven't decided if i'll pay an accountant or not - i have bookkeeping experience)?\

    Is there anything else i need to know???


    Thanks in advance!

  2. #2

    Join Date
    Aug 2006
    Location
    Perth, WA
    Posts
    1,240

    Default

    Hey Yael

    All the best in starting up your business!

    I started my private practice about 18 months ago...best thing I ever did!!!

    I can't answer most of your questions...but I did find the Small Business Development Corporation (google it to get the website), to be a great starting point....it's WA based but I'm sure there would be an equivalent in Victoria...

    Regarding GST, you need to be making $50000+ to have to register...in my profession (because it's a therapy - Speech Pathology), there is no GST charged for therapy services...I only registered as I spent alot of money on setup of the business and wanted to be able to get some of the GST back...it's a pain doing the business activity statements, but I'm slowly getting my head around them!

    I definitely found having an accountant to be a huge asset...it cost me about $500 to get my tax done this year...but it was worth every cent...they know all the rules regarding depreciations, tax deductions, etc...which are so so important!!!

    Wishing you all the best!

  3. #3

    Default

    Yes they can access all assets in your name. Being a company means its a legally standing entity and all they can take you for is the assets of the business except any 'tools of the trade' i.e. they couldnt take a mechanics tools. It costs more but if it means you get to keep your house and car at the end of the day id do it.

  4. #4

    Join Date
    Aug 2005
    Location
    Melbourne, Victoria
    Posts
    1,635

    Default

    What if i'm a sole trader but i put my house into Family Trust??

  5. #5

    Join Date
    Oct 2004
    Location
    In my Zombie proof fortress.
    Posts
    6,449

    Default

    Yael, it is best to see an accountant to ask all these questions as they will be able to advise for you the best course of action for your situation (company, sole trader or trust) etc. Having a company does protect you to some extent, but these days Directors seem to have less protection, especially when it comes to loans, you tend to have to guarantor the loan.

    Bookkeeping experience is entirely different to what an accountant does. It is great that you have it, it should mean that your books are nice and tidy for when the accountant does your tax return. Depending on the amount of bookwork needed you can either use manual cashbooks etc or purchase one of the more basic accounting packages. MYOB or Quickbooks, its your choice, most accountants can deal with both.

    Good luck. Oh maybe get yourself a copy of Show Mummy the Money it has a lot of this info in it.

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