72 replies to this topic

[wot179]

Since the death of my TAFE career Im thinking about hanging up a shingle and starting a small fabrication business.

 

So I figure I need a business name.

 

I go to the ASIC site which tells me I need an ABN to get a business name.

 

So I follow the link to get an ABN, and it tells me I need a business name to get an ABN.....

 

Am I missing something or misinterpretating something here?

 

Any assistance from those in the know would be appreciated.

 

 

[rodomo]

A sole trading?

[Rockoz]

Sole trader doesnt actually need a business name.

Use your own name when applying for the ABN.

If you use your own name you dont need to register a business name.

Saves a few bucks.

And you can make a choice whether or not you register for GST

You dont need to until you turn over 50k I think.

But if you intend to work for businesses they like you GST registered because it is a pain to deal with if you arent.

Edited by Rockoz, 28 February 2015 - 11:12 AM.

[wot179]

Thanks gents.

[N/A-PWR]

Hello Craig, and as above,

 

Same here in WA,

 

I used my name first,

(( Fill the ABN out as a Sole Trader ) free at the post office )),

 

then when you register a business name ( $90 a year here for each business name), you have to use the business name,

( you can also have several registered names, just use the appropriate one for that job - Joe's Flowers or Craig's Hotrod Services ),

( your ABN number is the same throughout ),

 

and then if your business name/s stop trading,

( not paying for that name/s anymore ),

 

then you use your real name again,

(( you can only use your real name if you have no other business names ) your registered birth right )).

 

 

Never had any trouble not being GST registered,

 

and the 50k has risen to 70K over here before we need to be GST registered.

 

 

GST Registered means, you charge 10% extra on the invoice, and pay that quarterly to the Tax-man, ( paperwork  )

Any assistance from those in the know would be appreciated.

 

Welcome to the other world.

Edited by NA-PWR, 28 February 2015 - 02:22 PM.

[Uncle Chop Chop]

ATO says the turnover limit is $75K before GST registration.

[N/A-PWR]

ATO says the turnover limit is $75K before GST registration.

 

Even better, thank's Vick,

 

Can earn a living on 75 grand

[Rockoz]

But businesses dont like you not being GST registered.

They have to withhold tax from you from memory.

[EunUCh]

Try and avoid the GST limit (just say No)...it is just another burden placed upon you to become a Tax Collector which you don't get paid for by the ATO through lots of paperwork/nightmare type stuff.

 

Always thought that the GST was included in prices unless otherwise advertised?..and then as a business you need to charge GST

on top of something that you pay for then pass on to customer that has already had a GST slug on it.

Would not "withholding tax" be fraud?

 

 

 

[Rockoz]

It may have changed.

But if you were not registered for GST you could not add it on.

The company you supplied to deducted 40 odd percent for tax. Similar to PAYG for employees.

Big headache for the business which is why they dislike dealing with people who are not registered.

 

GST is only included in the price when dealing with the public.

When dealing with businesses you give them a price + GST.

[TerrA LX]

We should have lunch soon.

[N/A-PWR]

I work as an hourly rate for company's, and charge the hours x the rate,

 

then that total I get weekly, and pay 21% Tax on that annually. 

Same as jobbing work for the public, invoice for work done/quote, pay my Tax annually

[Dr Terry]

Even better, thank's Vick,

 

Can earn a living on 75 grand

Just thought that I might add, that is $75K TURNOVER, not Profit.

 

75K becomes about 68K once the GST is paid & then after all your expenses & purchases are taken into account this figure could be as low as 30-40K. This lower figure is then your income remember, not 75K.

 

I'm not trying to discourage a self-employed sole trader, but do you homework on costs before diving in. Lack of understanding these facts is why 2 out of every 3 small businesses fail in their first year.

 

The upside of being a proper GST business is that all GST you pay on legitimate costs is fully refunded, so it's like getting a 10% discount on everything you buy, but the downside is the extra paperwork & then having to pay the ATO every cent of GST you collect (i.e. on every invoice you charge). Having said that you have to account for your income & tax deductions somehow, so if you if you have a simple computer program (MYOB or similar) to keep track of your purchases & receipts it's a lot simpler that the old days of big journal & ledger books.

 

Also I've recently changed over to using the ATO online 'business portal' to do my BAS & it's a big improvement on the old once a month trip to the post office.

 

Dr Terry

[wot179]

Great advice, thanks.

[S pack]

Just thought that I might add, that is $75K TURNOVER, not Profit.

 

75K becomes about 68K once the GST is paid & then after all your expenses & purchases are taken into account this figure could be as low as 30-40K. This lower figure is then your income remember, not 75K.

 

I'm not trying to discourage a self-employed sole trader, but do you homework on costs before diving in. Lack of understanding these facts is why 2 out of every 3 small businesses fail in their first year.

 

The upside of being a proper GST business is that all GST you pay on legitimate costs is fully refunded, so it's like getting a 10% discount on everything you buy, but the downside is the extra paperwork & then having to pay the ATO every cent of GST you collect (i.e. on every invoice you charge). Having said that you have to account for your income & tax deductions somehow, so if you if you have a simple computer program (MYOB or similar) to keep track of your purchases & receipts it's a lot simpler that the old days of big journal & ledger books.

 

Also I've recently changed over to using the ATO online 'business portal' to do my BAS & it's a big improvement on the old once a month trip to the post office.

 

Dr Terry

Dr Terry you sure are tuned in.

 

Just paid my BAS for the Sept-Dec 2014 quarter. 65k gross turnover less about 3.7k GST payable to the Tax Dept less 19k (exclusive of GST) expenses leaves 42k income for the quarter less 8k PAYG Tax = only 34,300 in my hand.

[caterham2]

 

But businesses dont like you not being GST registered.
They have to withhold tax from you from memory.

 You can download some forms off the ATO website. These are used to give a reason why the client does not have to withold tax from your payment. They are then lawfully able to pay the full invoice amount wiyhout withholding tax being kept out. They then file this in their records, jobs done easy peasy.

[S pack]

  You can download some forms off the ATO website. These are used to give a reason why the client does not have to withold tax from your payment. They are then lawfully able to pay the full invoice amount wiyhout withholding tax being kept out. They then file this in their records, jobs done easy peasy.

I believe you have to supply the business client with your TFN to avoid witholding tax

[N/A-PWR]

One joint I worked at requires us to be on their books,

 

so we lost 3.5% towards super,

 

but remember, we are on $10 an hour more than permanent staff. 

[S pack]

Still more than double what i make in a quarter.....

Yeah but you don't have a wife and two teenage daughters to suck your bank account dry DJ.

[S pack]

I know, I made the right decision there...Just pointing it out before you get obsessed with that cry faced smiley

Haha, Touche.

[Rockoz]

Rules with not being registered for GST must have changed.

All the businesses I deal with require me to be registered.

Most have a requirement for $20 000 000 Public Liability

They all required it before doing first work.

Dont have it............ Dont bother coming.

 

My brother had a guy doing work for him years ago who wasnt registered for GST

Said it was a right PITA doing the paperwork.