Home – New Forums Starting your journey Starting a trading card business. Would like help to answer some Questions Reply To: Starting a trading card business. Would like help to answer some Questions

#1017257
New Biz Starter
Member
  • Total posts: 13
Up
0
::

First Up David,

Congrats on taking the plunge. Ill answer the ones I beleive I can but I do recommend you get advice.

1) Can’t answer – would suggest you call u customs agent to find out more.

2) It depends a little on your stucture, but assuming you are a sole trader and this is a hobby business you do not need to apply for an ABN. If your plan is to take this more seriously down the track then an ABN will allow you to claim tax credits for the gst on good and services you purchase – though you will have to charge and collect gst yourself. For me the rule of thumb would be if you plan on making this a serious endeavour – you should probably register – but that is your call.

3) You need an accountant to comment on that one. From my perspective that looks like a capital gain and may well be subject to Capital Gains Tax. I am not sure if it being a hobby gets you out of that one.

4) Id keep all you receipts if possible. For the petty cash amount throw them in a folder and record them on a spread sheet. There are some rules about items under a certain value.. but I could not be sure about what that is – ask your accountant Id suggest

5) yes – if they are to run your business or to sell as stock.. no problems there – just keep good records of the transaction

6) There are many about – we can help but there are others also

7) ABN – either reapply or get your business set up consultan to assist you.

Cheers and good luck :)

John

dnmity, post: 19739 wrote:
Hi,

I would like some more information in regards to some concerns I have in starting my business.

Rough Overview:
I’m planning to import cards from an American wholesaler and reselling them in Australia through an ecommerce website and ebay.com.au. I was also wanting to sell my own collection which I have no receipts of because they were from my own hobby (valued about AUD$15,000 today). I would also like to buy collections from private sellers off ebay, however I believe I would not receive any receipts from them. There will be about 30-50% profit margin from my goods

Questions:

(1) I’ve heard from this website that we can get custom-free goods as long as its under $1000 per order. However, I remember reading somewhere that if I order two lots of $800 goods in a certain time frame, I may be charged customs. Would someone be able to clarify this?

(2) Do i need to register for ABN and what is the benefits in doing so?

(3) Prior to official business, I’ve already sold around $15,000 goods with a profit of $4000 as a hobby since the start of financial year. What do I need to do tax-wise in terms of those sales?

(4) What goods (postage stamps etc..) do I need to keep receipts for?

(5) Is it possible to buy business goods from ebay private sellers and received a tax deduction?

(6) Does anyone know any reputable business consultants in Sydney which can help me in starting this business up or help me answer these questions?

(7) Last question, due to a little mistake in registering for an ABN last week which was i accidentally regarded the activity as a hobby (as i believed it meant that what it was previously) i was refused an ABN. They wrote that they will send me an official refusal statement and allow me to send a formal objection to it. I realised now that if i was to do it again and say that it isn’t a hobby i will be accepted. Should i wait for the letter or just try to register again?

Thanks alot and hope to hear from anyone. Sorry for the lengthy sentences.

David