Home – New Forums Starting your journey Only starting out need help please……

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  • #978616
    hairextension
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    Can anyone please answer my questions.I want it set up my own business applying and trading hair extension to the public.I am getting my ABN number tomorrow.
    1 .Can I start advertings straight away ?
    2 . I will be doing extensions at home and in clients home do I need public libility insurance or can I make out a contract myself informing the client of the pros and cons with extensions.
    3. Do I need a licence to trade in public ( markets ) ?
    4. Do I register the company as sole trader even though I am doing a service by apply the extensions as well ?
    5 . I will only be importing small quantity of goods from China under $1000 to see how the business runs do I need to register for GST.
    6. How much will an accountant cost to look after my finances ?
    7. I have a part time job in a salon will all my taxes be kept seperate?
    8. If I decide not to sell the products and just apply the extensions can this be classes as a hobby? Where do I stand on this?

    Any help would be great

    Thanks
    Michelle

    #1108336
    kathiemt
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    Hi Michelle, you probably should go to the introductions thread and introduce yourself – let people get to know who you are. Sometimes people come to forums, ask questions, get answers, and go away again, losing the opportunity to network with others.

    Sounds like there’s quite a bit you need to learn about running a business. I personally believe that if you’re going to be in business, you do need to find an accountant who specialises in supporting small businesses. They can help prevent you from making mistakes and guide you in the right direction. They can also ease your concerns about running a business. I can’t tell you how much they might charge – they might do a free first consultation, or they might have a charge for a first visit that is different to the charges for subsequent visits. Where are you located and perhaps others can recommend an accountant to you?

    I would highly recommend you get insurance before you start. If something went wrong and a client needed to make a claim against you, you would be in dire trouble without insurance.

    With respect to trading at markets – you need to contact the market organisers to find out. Where I live, I participate in two markets. One requires me to have insurance, the other includes a fee to cover insurance.

    You mention ‘registering a company’ – if you’re running your business as a company you need both legal and accounting advice. A sole trader is different to a ‘company’.

    Your accountant will advise you re GST too. The tax laws are that you don’t have to be registered for GST if bringing in under $75k I think it is, however you may find that also means you can’t claim gst as an expense either. Your chosen accountant will tell you what’s best for your situation.

    I hope I’ve helped in some small way.

    #1108337
    MyGreatIdea
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    Congratulations on the new business Michelle, and for getting the information you need before you start.

    hairextension, post: 120371 wrote:
    1 .Can I start advertings straight away ?

    Once you have everything in place, yes. Not just the ABN, but licenses, insurances etc. too

    2 . I will be doing extensions at home and in clients home do I need public libility insurance or can I make out a contract myself informing the client of the pros and cons with extensions.

    I would suggest that public liability insurance should be a priority for you. Also check with your local council as you may need a license to work from home.

    3. Do I need a licence to trade in public ( markets ) ?

    Every local shire is different and it could be that while you may need a license in one shire, just one suburb away in a different shire, it could be a different answer !! Check with each one and make sure you give yourself plenty of time to apply and obtain any licenses needed – local councils can be notoriously slow.

    4. Do I register the company as sole trader even though I am doing a service by apply the extensions as well ?

    You need to decide which way is best for you to operate – either as a sole trader or a company. An accountant can give you the best advice on this.

    5 . I will only be importing small quantity of goods from China under $1000 to see how the business runs do I need to register for GST.

    You only need to register for GST when your annual income (before expenses) goes over $75,000. Many businesses however register anyway, especially if they purchase a lot of supplies which include GST. Best to talk to your accountant about this too.

    6. How much will an accountant cost to look after my finances ?

    Have a look through the FS Directory – there are plenty of accountants there. Give a few a call and see if anyone is willing to give you a free consultation to get things started. Make sure you have a full list of questions to take with you – it’s easy to forget to ask something !

    Wendy :)

    #1108338
    JacquiPryor
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    Hi Michelle,

    Kathie and Wendy have both given you some great advice. As Kathie mentioned, introducing yourself in the introductions section may see more members contributing to provide advice. To add a couple of points to the previous answers:

    Quote:
    Originally Posted by hairextension View Post
    1 .Can I start advertings straight away ?
    Once you have everything in place, yes. Not just the ABN, but licenses, insurances etc. too

    If you plan to call your business something – you will also need to register a business name (or the company if you decide to go that way)… you should register your business or company name before advertising/promoting.

    7. I have a part time job in a salon will all my taxes be kept seperate?

    This depends on your business structure. If you get the ABN in your own personal name – i.e. as a sole trader then all the business income is basically your personal income – so, your employee wages from the salon + business income & expenses will all be treated together at the end of the financial year. If you register a company then the company gets an ABN and is its own entity with its own taxes, separate to yours. The company then could pay you a wage or give you some income, and the company should then withhold tax just like any other employer would. As previous comments suggest – an accountant can give you advice on the best structure for your personal circumstances and also advise on you on how this affects your personal income/tax.

    8. If I decide not to sell the products and just apply the extensions can this be classes as a hobby? Where do I stand on this?

    No – a business is still a business if it provides services rather than products. This page at the ATO website outlines Hobby versus business – from what you have said, I think you are intending to operate a business, not a hobby.

    #1108339
    TheGoldenGoose
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    Hi Michelle, welcome!

    You might want to check out your local BEC. You can talk to them for free, they give you loads of little tips and tricks when just starting out and even sometimes have vouchers/discounts for certain accountants etc.

    http://www.becaustralia.org.au/

    Best of luck with your new adventure :)

    #1108340
    Paul Wineberg
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    • Total posts: 43
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    Hi Michelle,

    Congrats on the new buisiness venture. I am sure it will be exciting for you.

    I am an accountant based in the outer South East of Melbourne. If you are from Melbourne, I am happy to meet you somewhere to give you a few ideas on setting up your business (such as corporate structuring, ABN, GST, tax advice, etc.). If you are outside Melbourne, I am happy for you to give me a call to discuss this over the phone. You will not be charged for the initial discussions. I know it can be tough to start out in business and I am happy to have a chat to you about it. Let me know if you owuld like my details and I will send them through to you.

    Kind Regards

    Paul

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