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July 6, 2021 at 12:04 am #1228554Up::0
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!
April 12, 2021 at 4:05 pm #1226957Up::0Thanks for your reply Chris. From her wording, isn’t she indicating that her margin, as the distributor, is 18%? I read it that 18% is possibly the lowest she’s willing to go?
April 12, 2021 at 6:48 am #1226950Up::0I should also mention that I have done my own calcs which show I am within these percentages so I think I must be doing something wrong or misunderstanding what she’s saying.
November 20, 2020 at 2:12 am #1224456Up::0You and your company are separate entities, so yes, you can have separate ABNs. Yes, you’d have to do separate bookkeeping and BASs if they’re both registered for GST. If you’re not using your personal ABN right now though, and you are registered for GST with your personal ABN, I’d cancel the GST registration until you wanted to use it Edson to save on reporting. Good luck with your new company!
October 23, 2020 at 1:32 am #1224319September 4, 2020 at 10:38 pm #1224006 -
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