Are you starting a new business? If the answer is yes, it can be difficult to know where to start. A good place to begin is finding out what business registrations you are required to apply for.
You may need to register your business for a number of tax obligations. The most common tax registrations businesses need are a tax file number or TFN, an Australian business number or ABN, goods and services tax or GST, pay as you go withholding (PAYG) and fringe benefits tax or FBT. If you’re registered for GST, you can also register for fuel tax credits. Applications for most tax obligations can be completed and lodged online.
To highlight some of the business registrations you may need when starting your business, we have created a couple of examples for you to refer to.
Jason’s Landscaping Business
Jason started his own business as a landscape gardener. He does most of his work on site and in his workshop.
Jason doesn’t need a separate TFN because, as a sole trader, he uses his individual TFN.
He needs an ABN as he is going to register for GST and needs to quote an ABN when dealing with other businesses.
He plans to work alone initially, and hire employees later in the year.
Jason sometimes uses fuel in machinery such as a whipper snipper, ride-on lawn mower and a generator, to do his job. Jason may be able to claim fuel tax credits and is required to be registered for both GST and fuel tax credits.
Mary’s Sunny Café
Mary started her own business, The Sunny Café.
At the same time, she created a company, Sunny Cafe Pty Ltd, through which she runs the business.
The company needs a separate TFN.
It also needs an Australian Company Number, or ACN.
And the company needs to apply for an ABN as it must register for GST.
As Mary will be employing staff, Sunny Café Pty Ltd needs to register for PAYG withholding.
Mary plans to have private use of a company car, which is a fringe benefit. If FBT is payable on this benefit, the company needs to register for FBT.
There are a lot of things to consider when starting a new business. Business registrations are just one aspect to consider when setting up. If you would like more information on how to set up your business correctly from the start, Bishop Collins is ready to help. Please complete the form below, and we will be in touch.