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  • Donating Members
  • Member For: 15y 3m
  • Gender: Male
  • Location: Sydney - Brighton Le Sands

As it stands, I have just payed for my ABN and working on setting up my domain for a IT solution website. Im kind of worried about what to do next, how the business will come into play when its tax time..

Has anybody started there own business?? what should I start to look for?? tax returns? etc etc??

Thanks

Edited by 4DZILR
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  • Moar Powar Babeh
  • Lifetime Members
  • Member For: 19y 7m 12d
  • Gender: Male
  • Location: Perth

What are you doing? get a good tax accountant, get some effective tax mitigation strategies in place, use the ato's tax calculator too workout how much tax you should be paying each month and add 25% too it. Put this ina separate account and get it earning interest for you. Also consider a separate account for you gst so you don't go spending that.

  • Donating Members
  • Member For: 15y 3m
  • Gender: Male
  • Location: Sydney - Brighton Le Sands

I am only starting off so im looking at just offering IT support for business and home users.. Pc builds and software installation, data recovery..

I dont plan on making a sh*t load of money... just somthing on the side.. say less than 5k a year..

Do I really have to worry about tax and that that much?? What if I dont make no money for a year?? seriously im not that switched on when it comes to this..

Edited by 4DZILR
  • No boost, no bottle, just my foot on the throttle!
  • Lifetime Members
  • Member For: 21y 2m 21d
  • Gender: Male
  • Location: Sydney

Mate,

For so little work, I would either not bother doing the whole ATO/ABN stuff as it is under $5k or do it propperly full time.

The costs of doing all the compliancy stuff and paying tax will not be worthwhile. Try doiung cash jobs and if it work out, then try it full time.

I run and IT company for 17 years with 16 staff and sometimes I wished I was back as a 1 man band, without all the headaches of running a real busienss.

  • A much better forum
  • Silver Donating Members
  • Member For: 16y 9m 12d
  • Gender: Male
  • Location: Victoria

Just get an ABN without paying GST... You won't need to collect GST or pay... Then you can still invoice others...

If you only make $5k you should have enough expenses to pay no tax...

  • Member
  • Member For: 15y 11m 25d
  • Gender: Female
  • Location: Frankston

You need to get some proper advice as there is a lot to consider. I am a qualifed bookkeeper and go through this all the time with clients. You need to have your ABN set as GNR which is GST non registered until your turnover reaches $75k then you must be GST registered and charge GST on all sales. You need to get professional advice in regards to income tax because although you may only earn 5K for the first year in your business, you may earn $90k at your day time job which would have severe tax implications for you. Anything you earn between $34k & $80k is taxed at 30% and then above $80k the rate goes up to 37% so yes you would most certainly need to put money aside for tax. There are many other factors that come into play too. I see all too often people thinking they know best and doing or claiming things that they are believe are correct and then end up in all sorts of trouble because they never got essential and accurate guidance.

Just another thing to, you need to register a business name and at this point a sole trader would be the recommendation but you would still need to make that decision once you have spoken to someone about your entire situation. Setting up as a company costs an absolute fortune and has to many compliance issues for someone earning under $80k net profit from the business and this would include costs of workcover, super etc which you just don't need when starting to establish yourself. This is another mistake that people make.

  • The Cleaning Dudes Ute
  • Silver Donating Members
  • Member For: 19y 23d
  • Gender: Male
  • Location: Bentleigh, Vic, Australia

After years of advertising with my business. I tried many different media, yellowpages, online listings, paper ads.

As of a few months ago I started google ads... Holly mother of god it may not be cheap, but christ it works WAY better than everything else.

  • Donating Members
  • Member For: 15y 2m 19d
  • Gender: Male
  • Location: Eastern Suburbs, Melbourne

I just started a new business, Cleaning Gals, I've got some of the hottest birds working for me, might give that google ads a go, see if I can get some of your clients.

Thanks Jman

  • I love gooold member
  • Donating Members
  • Member For: 16y 4m 2d
  • Gender: Male
  • Location: Melbourne (west)

I'm with Bel - and am a qualified Chartered Accountant. Don't normally find that level of wisdom in a bookkeeper Bel! beerchug.gif

Are you looking to take on any clients??!! haha

  • Donating Members
  • Member For: 15y 3m
  • Gender: Male
  • Location: Sydney - Brighton Le Sands

dead set, my main thought was just to use my abn and business name for support in IT support.. Say a business needs my work, they can claim again my abn right??? man I need to think this through... Dont want to cause more burden for me :fool:

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