Many women opt to start their own business, rather than paying the extra cost of purchasing one that is a going concern. They may have special skills and training that mean they can set up as a sole trader to save on the costs of employing staff. Many women who have training as accountant, hairdresser, beauty consultant, or in some other field can even set up in their home to save costs until they get an established clientele.
The need for registration
If you decide to go this route, there are several steps to take that make your business a legal entity and one is registration. This can be done easily enough online and all you have to do is answer some questions on an online form. Once the registration goes through you are given an Australian Business Number (ABN) that you can then use on all your brochures and advertising, not to mention invoices. This ensures a professional look and feel for your business. It is also a legal requirement, needed for your tax returns.
If you don’t register your business it will be considered a hobby, even if it brings in a good return. However, it is wise to get that ABN and sort out your tax so that your business can be properly established. If in the future you decide to sell the business, you really won’t be able to unless it is actually classed as a business by being registered. And if it expands and you decide to employ staff or even go in partnership, then having it registered is essential to make it all legal.
Register your business name
Once you have your ABN, you can then register the name of your business at ASIC Connect. This too, can be done online. You just have to remember to write ‘no’ in answer to the question, Do you have a current business?. Having a business name will really make your business into a professional and legitimate business. It can be used in all your advertising, on your website and so on, to ensure you get plenty of customers.
Payment for registering the business name must be completed within 10 days. However, there is no charge for just getting an ABN.
What if you have a company?
If you have a company, it is a legal requirement to register it. However, it doesn’t have to have a name; you can choose the ACN – Australian Company Number – as the name. It is a legal requirement to show the status of your company on certain documents. This is done by adding Ltd, or Pty Ltd after the name, depending on which applies. You will know by this stage which one applies to your business.
You have to make sure that no one else has registered the name you choose before you can register it.