Internet Business

[JimmyJam]

Hi,
I am starting a business soon, (I have just left school) and I would like to know just a couple of things. I want to make a website that will sell interviews with experts, and I was wondering when will I need to register an ABN? Moreover, when I receive payments via paypal, do I call it income tax? Or business activity? When do I need an accountant? What things do I need to prepare before I start the website and start selling?
I am sorry these are so newbish questions, but these are questions I have no idea how to answer, I did a search, but I must not have typed the correct keywords, because I haven't found what I needed.

Thanks muchly for helping if you can. I am really excited to get started.

Jimmy

[TehCamel]

I'd say you need an accountant when it becomes cost effective to have one. IE, if your accountant costs you $500 a year, then you want to be making that much.. or at least see how he can return you that much extra..

(or she.)

whether you treat the revenue as taxable income, or business activity, probably depends on how you're structured.

However - whether you're a company, or a sole trader.. your profit will be taxable anyway.. so don't get the words too confused.


Here's how I'd look at doing it: ( i may not be in exactly the right order)
Register an ABN,
Maybe a trading name, for instance JimmyJam's Interviews. (This is not essential though, you can trade using your own name)
grab a book on small business accounting, or at least do some basic accounting training, so you have an idea how to treat your expenses, how to setup your accounts, etc.
keep all your receipts.
Do your books regularly, so you don't lose track of things.

And keep reading, reading, reading, posts on this forum, and probably others.

[Warren Cottis]

Hey Jimmy

Congratulations for having an entrepreneurial spirit and taking the initiative in joining this forum. Every school leaver should be taking a look at what's here.

Have you heard the question... How do you eat an elephant?... and the answer is... One mouthful at a time.

Well right now you are standing in front of an elephant called your new business.

Here's a suggestion so you don't get indigestion and die...

Put all of your energy into sourcing and completing one, two or three interviews. Focus on being the best interviewer ever and editing your interviews so they present extremely well.

Then for whatever topic your interviews are about (say) on health or (say) on business or whatever... find someone in this forum who already has an existing health or business or whatever website with existing visitors and try to do a joint venture with them to promote your interviews.

In that way you will concentrate on what you do best, keep your costs down, learn the admin side of business much faster and also have a mentor.

Whenever the time is right you can launch your own website (costs money) with a much greater chance of success.

Good Luck!

Originally Posted by JimmyJam

Hi,
I am starting a business soon, (I have just left school) and I would like to know just a couple of things. I want to make a website that will sell interviews with experts, and I was wondering when will I need to register an ABN? Moreover, when I receive payments via paypal, do I call it income tax? Or business activity? When do I need an accountant? What things do I need to prepare before I start the website and start selling?
I am sorry these are so newbish questions, but these are questions I have no idea how to answer, I did a search, but I must not have typed the correct keywords, because I haven't found what I needed.

Thanks muchly for helping if you can. I am really excited to get started.

Jimmy

[ray_223]

I've always suggested you look up your local Business Enterprise Centre (BEC) - http://www.becaustralia.org.au/.
First visit is free I believe and they can also recommend accountants and other professionals of interest.

[JimmyJam]

Thanks everyone for the responses, this place is awesome. I now have a direction to head in. Thanks so much

Jimmy

[JacquiPryor]

Hi Jimmy,

Another good place to read through - http://www.ato.gov.au/businesses/ent...x?menuid=43539

This section of the ATO will help understand your business situation and the sorts of records you must be keeping etc.

If you intend to operate a business - you must have an ABN. If you will be operating it as a sole trader, then it is your ABN; as TehCamel mentioned you can then register a trading (business) name, which you must do if trading by any name other than your own. When you register a business name it will ask you as the sole trader if you have an ABN already and ultimately it will be linked up.

You have asked if when you receive payment via PayPal do you call it income tax or business activity. It would be business income - income tax is what you pay for earning the income - the initial payment through PayPal is not income tax itself. Again as TehCamel already mentioned - how and what is paid in tax will depend on the structure of your business. If you operate as a sole trader then even if you have a different name registered for the business name the 'entity' is you personally, so the money the business makes/spends will likely have a direct impact on your personal income and therefore your income tax. If, for example, you registered a company (e.g. Pty Ltd) then it is its own entity and would need its own ABN and would pay its own tax on profits etc; payments to you from the company would essentially be "wages" and you would then do your own taxes etc at the end of each year 'as normal'.

You will also need to register for GST once turning over more than $75,000 so you need to keep an eye on what the business bringing in.

If operating as a sole trader then also consider a separate bank account for the 'business income' etc - this will help track incomings/outgoings to properly work out tax and things come the end of the financial year - it can be a bit messy to just have it going into your personal bank account.

All the best with it!

[flower-child]

you could also start here
Starting a business? Please read this before posting

[DanielM]

Congratulations on your initiative Jimmy! Wishing you all the best, I would wait until you have an idea on what income you are looking to earn before paying an accountant.

Remember slow and steady

[riverbiz]

Visit the Small Business Development Corporation they have a great book A Guide for Operating a Small Business. Also look at the NEIS program (New Enterprise Incentive Scheme)

[tonyk]

Agree with riverbiz. NEIS program is well worth looking at as you get a mentor to help guide you through the first 12 months of your business.