Home – New Forums Starting your journey Registering a business name

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  • #987576
    Hammock Man
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    • Total posts: 19
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    Hi there, I am wondering how important it is that I register a business name. I have setup a Facebook page and am currently setting up a website and have registered an ABN number. Are there other things I need to do to make this legal and what are the tax implications of making the business officially registered?

    Many thanks,

    Hammock Man

    #1163411
    affgar
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    • Total posts: 123
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    If you have a name other than your own personal name … most likely, legally you need to pay for a trading name.

    Tax implications are numerous & vast … look on ATO website or talk to accountant. Like any money making venture you have to pay tax & meet required legal obligations.

    You need insurance ….proper accounting procedures.

    Sounds like you need to do a small business course or talk to a business adviser. ATO/ASIC websites have some good information about starting business.

    #1163412
    SentinelInfoSec
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    • Total posts: 8
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    Hi Hammock Man,

    If you want to trade under a name that is different (even slightly) from the legal name of the person or company that operates the business, then you must register the business name. This even applies if a company wants to trade under the company name but without the “pty ltd” on the end. If you’re a sole trader, then the only circumstance when you don’t need to register a business name is if you want to trade under your own name. (“John Smith” – no registration required, “John Smith the Fishmonger” – needs to be registered).

    It’s worth noting that the business name itself is not what makes your business ‘official’. It’s not like registering a company, which is a ‘legal entity’. A business name is just a requirement that creates a traceable link between the name you trade under and the actual legal entity (company or individual) carrying on the business. The ATO has it’s own definition of what constitutes carrying on a business, and the small business sections of both the ATO and business.gov.au websites are worth reading.

    As for tax implications, yes, there are lots, and you really need to either speak to an accountant, do a lot of reading or, ideally, both. If you’re a sole trader, it will make your tax return a whole lot more time consuming. Registering a company brings a lot of legal and tax obligations with it, but can be beneficial above a certain size, or where the business carries significant risks. And then there’s GST. If you’re annual turnover is below the threshold ($75k from memory) you don’t need to be registered for GST, but there are some advantages to do so anyway (if you’re registered, you can usually claim input tax credits for expenses at a time when most businesses are spending more than they’re making – every bit helps!) Again, talk to an accountant – they’ll know the tricks and traps and be able to tell you what is the best for your circumstance.

    Cheers,

    Michael

    #1163413
    MissSassy
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    Yes Hammock Man speak to an accountant and make sure you have everything as it should be.

    You don’t want any issues down the track just because you didn’t get your registrations correct.

    #1163414
    Hammock Man
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    Thanks for this useful information.

    #1163415
    Simply Money Honey
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    Hi Hammock Man

    You will need to register a business name if you intend to trade using a name that is different from your own name or if you are using a company that is different from the company name.

    You need to consider things like do you need to register for GST, what types of insurance do you need, what is the best business structure for you to be operating from, how you will keep and record your financial records. I have a free start-up checklist on my website (the link is in my signature) that should help you understand the things you need to consider.

    Cheers

    Gabrielle

    #1163416
    Natalie Khoo
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    • Total posts: 67
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    Hi Hammock Man. In my experience, I wish I registered a business name when
    I first started my copywriting venture. I originally thought I could have a
    career as a freelancer, therefore I could use my own name as a sole trader.
    However once my business grew and I needed to employ staff, suddenly
    representing my services under my own name didn’t make as much sense. I
    have since registered Avion Communications. Had I registered a business
    name in the first place, I wouldn’t have had to rebrand everything and set
    up new emails/website etc. I hope that helps, Natalie

    #1163417
    Carl Desacola
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    • Total posts: 21
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    Hi All,

    Hammock Man’s question about registering a business name appears to have been well and truly answered by others.

    As to the second question about what “other things” he needed to do, I have extracted the following from my law firm’s website as the content just seemed appropriate for the occasion:

    • Determine a suitable business structure (eg. sole trader, partnership, company, trust, cooperative, association, etc)
    • Consider appropriate asset protection and risk management strategies
    • Choose and register a business name with ASIC
    • Incorporate a company with ASIC (if required)
    • Apply for an Australian Business Number with the ATO
    • Apply for a Tax File Number with the ATO
    • Register for Goods & Services Tax (GST) with the ATO
    • Understand your obligations regarding income tax, GST, FBT, land tax, stamp duty and excise
    • Comply with record-keeping obligations as a business
    • Understand your obligations under relevant Awards and the National Employment Standards
    • Understand your obligations under superannuation, workplace health and safety, workers’ compensation, anti-discrimination and privacy laws
    • Protect your business name or idea (intellectual property rights)
    • Determine what other licences and permits are required for your business (if any)
    • Review the terms of your business financing and insurances
    • Review and negotiate Lease Agreements
    • Prepare Employment Agreements and Independent Contractor Agreements
    • Prepare or review Supplier Agreements
    • Ensure business activities are compliant with fair trading and consumer laws

    I hope others will find this to be a useful checklist of sorts, too, when starting their own business.

    Kind Regards,

    Carl Desacola, Lawyer & Registered Migration Agent (MARN 1461661)
    Winthrop Mason | Business Lawyers & Migration Agents
    http://www.winthropmason.com.au

    #1163418
    Peter Watson
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    • Total posts: 98
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    Don’t forget to register your business name as a domain name.

    This is one of the first things I check. If I can’t register the .com.au version, I choose another name (.com to if its available).

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