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  • #978964
    dudley
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    • Total posts: 24
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    Hello!

    I am a stay at home mum looking at selling on ebay to get extra cash to pay bills etc.
    We will be selling cooking products, scales, pots, books, then moving to our own website and along the tracks a cafe with cooking products.

    I am studying patisserie which has management, only the basic stuff though, customer service, leadership and so on.
    Having no experience in business, we thought ebay would be an easier start up.
    What we want to know is which would be better for us, a sole trader or partner?
    I am very confused about the registration of the business/name, when will we pay taxes, GST, do we need a TFN for selling on ebay? Should we get an ABN now? Do we just go ahead and register for everything?
    I have read a lot of the forums and still don’t understand a lot about it, would it be wise to talk to someone?

    Selling on ebay is only the starting point then eventually, hopefully have our own store :)

    Thank you :)

    #1111050
    simonw
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    • Total posts: 60
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    eBay is a great place to start a business and test the waters to see if it is for you. I started out just the same as you and a year later I am now an ebay Powerseller.

    You should have a look at the ato website, as well as business.gov.au, All these questions would be answered within no time on those websites. Failing that, you can organise for someone from the ATO to come to your house and explain all of your requirements.

    Without knowing your situation, I am assuming:
    -Yes, you do need to register an ABN,
    -You can legally trade as your own name, but I would recommend registering a business name. It only costs about $30 and takes 20 minutes. It makes you look far more professional.
    -You only need to register for GST if you plan on earning over $75000, probably not going to happen in your first year so don’t bother, it will make more work for you

    And a couple of tips:

    -Keep receipts for absolutely everything you spend on your business. You can get monthly reports from eBay and PayPal outlining the fees they take and how much income you made.
    -KNOW YOUR FEES! eBay and PayPal both take a percentage of your sales, it is easy to get caught out at the end of the month and realize you haven’t actually been making as much profit as you thought. There are a few calculators online that make this easy.

    eBay is a great, low risk place to start selling and there is so much information online about making your listings stand out above the competition.

    You will learn as you go along, and one day it will all make sense. As long as you keep good records you will have no problems when tax time comes around next year.

    Good luck with your new venture!

    #1111051
    ntgd
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    I agree to the above, you can get a lot of good information from the ATO website and you can contact them for assistance as well.

    As you haven’t provide much details on who you might be partner with this business, it’s hard to suggest sole trader or partnership for you. There are a lot of things to consider when it comes to choosing a structure.

    As for tax matters, just as the above post, keep all your records and receipts and keep them in an organised manner and categorised them as well, it will make the bookkeeping side easier. Do it from the beginning and keep at it to make it a habit to be organised.

    You should also start finding an accountant that you are comfortable and happy with, as your accountant should provide youw advise about your business performance and help you get better with your compliance matters and help you find ways to improve your business. Accounting is a lot more than preparing number and lodging tax returns.

    Should you need any assistance feel free to ask.

    Besh wishes to your business.

    #1111052
    dudley
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    • Total posts: 24
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    Hello

    Thanks for the replys.

    This is my first time here, I had searched the internet and didn’t find what I was looking for and this site came up in my search. It is so great! I have gotten answers.

    It would be me and my husband going into business together, but for now it would be me, until we get our own business.
    I am not sure about the book keeping side, I don’t know how to do that, so talking to an accountant will be a good idea.

    Thank you :)

    #1111053
    ntgd
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    • Total posts: 36
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    As no one except the two of you know your current financial position, doing it as a sole trader and change to partnership later on or start as partnership or other structure is still not enough information. It may not be a good idea to post too much of your personal financial position on a forum, so best is still find yourself an accountant for advise.

    Bookkeeping is not very difficult. Being organise will help a lot. Once you find an accountant they can show you ways to keep records.

    Being a new start up business and selling on e-bay, you should not have a lot of different type of transactions, so you should be able to cope with the account keeping side. Learn some tips on the bookkeeping side and do it yourself will help to maintain costs, but when you have any problem, ask for advise, do not let the problem grow. I see too many client let their problem grow too long, and sometime it end up in a very bad situation that could have been avoided if they taken some action or advise earlier.

    Good luck.

    #1111054
    Kennethti
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    • Total posts: 415
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    dudley, post: 123522 wrote:
    Hello!

    I am a stay at home mum looking at selling on ebay to get extra cash to pay bills etc.
    We will be selling cooking products, scales, pots, books, then moving to our own website and along the tracks a cafe with cooking products.

    I am studying patisserie which has management, only the basic stuff though, customer service, leadership and so on.
    Having no experience in business, we thought ebay would be an easier start up.
    What we want to know is which would be better for us, a sole trader or partner?
    I am very confused about the registration of the business/name, when will we pay taxes, GST, do we need a TFN for selling on ebay? Should we get an ABN now? Do we just go ahead and register for everything?
    I have read a lot of the forums and still don’t understand a lot about it, would it be wise to talk to someone?

    Selling on ebay is only the starting point then eventually, hopefully have our own store :)

    Thank you :)

    Hello! Welcome to small business!

    I echo the sentiments above. Generally speaking and without looking into your specific situation, you would likely need to:

    1. Consult with an accountant about a business structure – sole trader or partnership. Generally speaking a partnership is basically two sole traders operating together. This can mean that debts incurred by the partners must be paid by both the partners. You need to examine the implications of this and what might happen if the business goes bad. If you are trading as a sole trader this means that your husband doesn’t have to pay your own debts. This might be useful from an asset protection perspective. Again, obtain professional advice in relation to this.
    2. Once you have settled on business structure, obtain an ABN for a business structure.
    3. If you are trading in a name other than your own name, register a business name with ASIC.
    4. If you have a logo or a brand name, do some research to make sure that you aren’t stepping on any toes, and then consider registering a Trade Mark.
    5. If you are trading over $75k per annum then you must register for GST and fill out Business Activity Statements.

    All the best!

    #1111055
    Chris – Marketing
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    • Total posts: 162
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    Ditto with above information.
    I strongly recommend u get sound advice from your account or a business mentor such as I before getting into the whole business. Having a rock solid business foundation incorporating good records and sound practices makes for easy work. U don’t have to do it hard.

    chris poulios
    http://www.satisfaction-marketing.com.au
    http://www.webthreads.com.au

    #1111056
    dudley
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    • Total posts: 24
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    simonw, post: 123525 wrote:
    eBay is a great place to start a business and test the waters to see if it is for you. I started out just the same as you and a year later I am now an ebay Powerseller.

    Without knowing your situation, I am assuming:
    -Yes, you do need to register an ABN,
    -You can legally trade as your own name, but I would recommend registering a business name. It only costs about $30 and takes 20 minutes. It makes you look far more professional.
    -You only need to register for GST if you plan on earning over $75000, probably not going to happen in your first year so don’t bother, it will make more work for you

    Hi Simonw,

    Wow that is great, a Powerseller! It would be nice to reach that status and very unlikely to earn over $75000!

    We are going to start off with as a Sole Trader for now, and depending on the situation think about another structure.

    I have looked on the net at prices for registering a business and they were more expensive, $100. Where did you go to get this price from?

    Thank you :)

    #1111057
    dudley
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    • Total posts: 24
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    Chris – Marketing, post: 123679 wrote:
    Ditto with above information.
    I strongly recommend u get sound advice from your account or a business mentor such as I before getting into the whole business. Having a rock solid business foundation incorporating good records and sound practices makes for easy work. U don’t have to do it hard.

    chris poulios
    http://www.satisfaction-marketing.com.au
    http://www.webthreads.com.au

    Hi Chris,

    Do you think we should get an accountant for selling on ebay? It is a starting point for our own business in the future and at the moment it will be some extra cash? or should we take it more serious than that?

    I am well organised, very particular where everything should be, it is just the bookwork I am afraid of!

    Thank you

    #1111058
    JacquiPryor
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    I have looked on the net at prices for registering a business and they were more expensive, $100. Where did you go to get this price from?

    Under the new national business name registration system, it is $30 for 1 year of business name registration, $70.00 for three years. Prior to this new system, when you would register just in your state/territory it was a bit more expensive – around that $100 mark – so you may have come across some out of date info… names are now registered through http://www.asic.gov.au.

    It is a starting point for our own business in the future and at the moment it will be some extra cash?

    As you are looking to register a business name, as a sole trader and get an ABN etc – this will be seen as operating a business… not a ‘starting point’ for a future business… even if in the early days you are testing the waters and making a little extra money, this could still be viewed as operating a business in the eyes of the ATO etc, so, an accountant would still be a good idea to make sure everything is done right from the start – this will also help you grow/expand after awhile most smoothly.

    All the best :)

    #1111059
    LucasArthur
    Participant
    • Total posts: 3,171
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    dudley, post: 123713 wrote:
    Hi Chris,

    Do you think we should get an accountant for selling on ebay? It is a starting point for our own business in the future and at the moment it will be some extra cash? or should we take it more serious than that?

    I am well organised, very particular where everything should be, it is just the bookwork I am afraid of!

    Thank you

    Hi Dudley,

    Interesting response.. Personally, and i may get in trouble for this, if you plan on moving ahead with a business model (eg ebay + then web site + then shop as a plan) it would be helpful to ensure you are following a complete business path.. What you do today with your ebay store may provide or exclude some opportunities you had/had not planned on in the future.

    Some professional advice (be it your existing accountant or local councils business mentors) from the outset will set you in good steed to power along, at what ever pace your decide, although hopefully has provided you and hubby with a beautiful roadmap to ensure you get to the right destination in the end…

    This does not mean you need to retain a professional, but have a relationship with one for those ‘just in case’ scenarios that you may want to call on one..

    Planning is imperative, eg where you buy stock from, who you sell to, how you sell to them, what margins you want or need, marketing, logo, names, brands, business bank accounts, merchant facilities (obviously ebay = paypal but you may want bank merchant if doing web sites – maybe), and the list goes on..

    Seriously not trying to scare you….. honestly… although i have been selling on ebay for over 12 years now (almost a teenager.. woot woot) and have managed to keep a 100% feedback record by planning everything.. costs, delivery methods, what to sell, how to sell and even more “who” to sell to… we also back this up with warehouse and retail presence and got to this stage by planning ahead from early days on ebay… if it wasnt for the advice, not sure how we would look as a business today…

    Oh boy, that has turned into more a story about me.. soz..

    Overall, if you do plan on going from ebay to web site to store (and retaining each along the way) a little forward planning with a professional of sorts will go a long way to helping you ensure you are on the right path… and of course,,, some FS forum inputs :D

    Look forward to learning more about your ‘adventure’ and wish you all the best.. its a fun time ahead for you… a new mumpreneur to FS..

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1111060
    dudley
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    • Total posts: 24
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    Hi guys,

    Thanks for all of the replies :)

    There is so much to think about when planning a business, I have always wanted to, I was too scared to take the leap or found excuses for starting, and watch everyone around me open theirs.
    No more excuses, I am jobless! this is what we have always wanted to do.

    Hi Jaqui, you are right, this is a business not a hobby and look at it that, I will be (hope!) be getting some sort of income and still go through the right channels.

    Hi Jason, We will look into seeking help from a professional, since I know little, hardly any on the bookkeeping side. Better to do it now just in case. This will be our business and we do not want to tarnish our name.

    Thank you everyone for your help :)

    #1111061
    ntgd
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    • Total posts: 36
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    I agree with Jason about getting it right from start.

    Since you are just starting, there is no better time to make sure you got a system in place for your business. It does not need to be complicated but it need to work for you and your business.

    I helped a lot of business that have financial difficulities that needed insolvency actions and I’ve seen far too many times that if the client only seek help earlier it will be a much more positive outcome.

    As Jason suggest, having an accountant in a lot of time is just-in-case you have a problem or have a question you got someone that you can ask for advise and assistance.

    Hope you business goes well.

    #1111062
    dudley
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    • Total posts: 24
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    There is so much to think about when planning a business, we have a lot of ideas and where we want this business to be in a certain amount of years, and expand from there, we want to be in the food industry as I am currently studying patisserie.
    We want to start selling cooking equipment and then cakes and biscuits, but we want two different names for both. I have read in this forum that you can have two business names under one ABN, how do we go about doing this? should we be thinking about this now or later on when we actually have a cake business?

    Thanks guys :)

    #1111063
    ntgd
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    • Total posts: 36
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    You can have multiple trading names. Just register the trading name with the ASIC.

    If you want to make sure you get the trading names you wanted, then you can register both names now, the cost of a business name registeration is $30 for one year or $70 for 3 years , so its not expensive and you get to keep the name you wanted even you might not use it just yet.

    If the trading name you had in mind is something that you feel is very good or unique and you want to prevent anyone used it before you then go and register it now so you know you got it.

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