05 Sep Taking your business to the next step
Employee With A Side Hustle
Hobby or business
Just because you are selling products or supplying a service doesn’t automatically mean you are in business. It is important to understand how the ATO would classify your activities.
https://www.ato.gov.au/business/starting-your-own-business/are-you-in-business-/
Statement by Supplier
If your activity is done as a hobby and you don’t have an ABN then you should use the ‘Statement by Supplier’ form to avoid businesses having to withhold an amount from their payment to you.
https://www.ato.gov.au/uploadedfiles/content/mei/downloads/statement%20by%20a%20supplier.pdf
| Applying for an ABN | Registering a business name |
|---|---|
| An ABN is a unique 11digit number that identifies your business or organisation to the government and community. You can apply for one through the Australian Business Register https://abr.gov.au/For-Business,-Super-funds—Charities/Applying-for-an-ABN/ |
A business name is the name your business operates under. You need to register a business name if you conduct business under a name other than your own. https://asic.gov.au/for-business/registering-a-business-name/ |
Solopreneur
Business Structure
There are 4 main business structures – Sole Trader, Company, Partnership and Trust
It is best to speak to your accountant for advice on what is most suitable for your situation.
https://www.business.gov.au/planning/business-structures-and-types
Bank accounts
Make sure you have a separate bank account for your business. It is also recommended that you have a second bank account where you put away a percentage of your income for future tax obligations.
Registering for GST
You must register for GST:
- when your business or enterprise has a GST turnover of $75,000 or more
- when you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation
- if you’re already in business and have reached the GST threshold
You need to register within 21 days of your GST turnover exceeding the relevant threshold.
https://www.ato.gov.au/Business/GST/Registering-for-GST/
Employer
Re-visit Business Structure
When you take on staff it is a good idea to re-visit your business structure. Is being a sole trader still right for you or would a company structure be better?
Hiring Staff
There are a million things to consider when hiring staff
- employment type
- rate of pay
- OHS
Speak to a HR consultant to help you through the process and to ensure you have everything in place
OHS
Just as important as hiring the right staff is making sure your workplace is a safe place to work. Get the basics in place and work on it as your business grows
Policies and Procedures
It’s better to create your policies and procedures long before an issue arises and you need them. A bit of work at the start can save you a world of headaches.
https://business.vic.gov.au/tools-and-templates/hr-policies-and-procedures-manual-template
Workcover
Generally, you must register for WorkCover insurance if you or your company employs any workers in Victoria. If your company employs you personally, then you are a worker of your own company, and need to register. However, you don’t need to register if you or your company has no apprentices, and pays, or is liable to pay, less than $7,500 a financial year in remuneration. You also don’t need to register if you’re a sole trader, an individual in a partnership or an individual trustee of a trust and you don’t employ any other people as workers.
https://www.worksafe.vic.gov.au/getting-started-workcover-insurance