When you are starting a new business you should:
| Check what business structure is best for your business? | Sole traders, partnerships, companies and trusts have different legal obligations and are taxed differently.
We cannot provide you with advice on what structure to choose; we recommend consulting an Accounting and Advisory firm to obtain advice on what structure to choose.
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| Check if you are entitled to an ABN | Not everyone is entitled to an ABN (Australian Business Number). Even if you are entitled to an ABN, you don’t have to apply for one.
However, if you must register for GST, you will need to apply for an ABN as well. If you choose to get an ABN, you will need to update your ABN record within 28 days of changes to your details. If you choose not to have an ABN, other businesses can withhold 46.5% of payments to you.
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| Check if you need a TFN? | If you operate as a sole trader, you can use your individual TFN for your business.
If you operate as a partnership, company or trust, you must also have a business TFN.
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| Check how running a business at or from your home affects your tax | Using your home for business can affect the capital gains tax (CGT) exemption that normally applies.
There are also rules about calculating expense claims. |
| (extract from www.ato.gov.au on 08/01/2012) |
