June 16, 2021 at 7:00 pm #1228177elsbethParticipant
- Total posts: 1
I am looking to start a dance class, once weekly on a very small scale. I will be hiring the hall and charging participants a nominal fee to cover costs. I anticipate some weeks making $40 some weeks making nothing. It all depends who turns up. I am doing it out of passion and an interest in creating something but don’t expect to make much profit if any – however I also don’t want to run at a loss. Am I starting a business here? Do I need an ABN? Do I need to declare my profit even if its only $20 a week? What are my obligations?
BethJune 17, 2021 at 4:18 pm #1228194Paul – FS ConciergeKeymaster
- Total posts: 3,173
Hi and welcome to Flying Solo Beth.
It is great to have you.
To be on the safe side, it is probably the path of least resistance to think of your venture as a business.
That is an enterprise with a (amongst other things), profit motive.
I would pause to think of the things you might need to run sustainably:
A Bank Account
A Business Name
Collectively, these are all the absolute minimum I think you need to get going.
Let us know how you get along.
PaulJune 19, 2021 at 12:34 am #1228226dandy2902Participant
- Total posts: 7
I love your business idea. I think you should hire someone to do Marketing for you. Invest in social media to interact with people and build content to attract new customers.June 21, 2021 at 5:12 pm #1228237Dave Gillen – FS ConciergeKeymaster
- Total posts: 2,554
As Paul has said, there are some advantages to treating your business like a business.
But if the business side of things threatens to put you off it altogether, you could probably keep it as a hobby for tax purposes while you test it out.
DaveDave Gillen - Client Acquisition | Brisbane | (07) 3180 0288June 23, 2021 at 3:54 pm #1228342valentlauParticipant
- Total posts: 54
A hobby is dancing with friends. To start a dance class is surely a business in ATO’s eyes. You can make a loss and be a business. You don’t necessarily need all the structure things, but to keep out of trouble you need to declare.July 6, 2021 at 12:04 am #1228554Biz KeepingParticipant
- Total posts: 10
Hi Beth. I agree with Dave. If you’re not looking at making a profit at this stage, and only to cover your costs, you are carrying on a hobby and not a business. Just be mindful if it starts to grow, it may become a business.
The ATO have a checklist to indicate if you are carrying on a business:
– You’ve made a decision to start a business and have done something about it to operate in a businesslike manner, such as registered a business name, or
obtained an ABN.
– You intend to make a profit – or genuinely believe you will make a profit from the activity – even if you are unlikely to do so in the short term.
– You repeat similar types of activities.
– The size or scale of your activity is consistent with other businesses in your industry.
– Your activity is planned, organised and carried out in a businesslike manner. This may include
—-keeping business records and account books
—-having a separate business bank account
operating from business premises
—-having licenses or qualifications
—-having a registered business name.
Be careful who you accept business advice from. Not everyone is appropriately qualified.
Enjoy your dance class!
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