Business Basics
MyGov
links medicare, tax, USI
Australian Business Number (ABN) Number
myGovIDExternal Link is the Australian Government’s Digital Identity app.
RAMExternal Link is an authorisation service that allows you to act on behalf of a business online when linked with your myGovID.
The ASIC national business name registration serviceopens in a new window allows you to register a business name in Australia.
Business Structures
- sole trader
- Partnership
- Trust
- Company
Sole Trader
A sole trader has an ABN that is linked to their TFN. This means their tax affairs are all managed within their tax return. Profits are taxed at amrginal tax rates.
- easy to get started
- No seperate tax return
- less flexibility
Costs
- free ABN
- Business Name - $42 for one year, $98 for three year
- Help from tax agent
- Accounting software - zero, quickbooks
- GST??
Abouts: - Website - Domain Names - Logo - Email Provider - General Business Setup Costs - Insurance - Marketing - Research - Legal Fees -
Partnership
A partnership can be between 2 or more people (or trusts & companies). The partnership will do a tax return that will see profits split based on the partnership agreement.
- Simple to manage
- Allows profit splitting
costs
- partnership agreement needed
- accounting fees
Trust
Trust can be in multiple forms such as discretionary trusts or unit trusts. They can allow for income splitting between beneficiaries of the trust.
- Generations wealth
- Potential legal protection
Cons
- Complex - settlor, appointor, trustee, beneficiary, distributions
- Higher setup costs
- Accounting Fees
Company
- Allows shareholders
- Flat tax rate - small business entities - 25% tax rate
- Good to retain profits
- Great Legal protection
Costs
- setup - $700 - 2K
- Asic Fee - $300+
- Accounting Fees = $700+
Get Money from Company
- Wages
- Declear a wage for yourself
- Directors Fees
- like Wages
- typically used for ad hoc payments, like for quarterly fee for board members
- Dividends
- payment from the company to the shareholders
- Loans
- money isn’t yours
Starting a Business
- growth over profit
- record keeping - lack of knowledge
- wrong people
Business Models
- SaaS - Cloud-based subscription software
- Marketplace - Facilitate transactions with buyers and sellers
- Usage-Based - Pay-as-you-go based on consumption
- Advertising - Sell ads to monetize free users
- Bio - Science-based tech companies
- Transactional - Facilitate transactions & take a cut
- Hard-tech - Lots of technical risk & long time horizons
- Enterprise - Sell large contracts to huge companies
- E-commerce - Sell products online
CRM - Customer Relationship Management
apollo.com
close.com
pipedrive.com
hunter.io