Starting a new business is a stressful event, and the legal maze is a large part of it. Missing parts of the process or making simple mistakes can create a mess of legal and financial problems.
But don’t worry, because if you’re starting a business in Sydney, we’re here to help.
Legal Aspects of Starting a Business in Sydney
If you’re starting a business in Sydney, here are a few legal issues you need to consider:
Trademarking Your Business Name
Imagine the frustration of establishing a reputation, spending thousands on branding, and then discovering that you have no legal claim to your business name.
It’s a nightmare, and it happens all the time. That’s why trademarking your business name should be one of your first steps as a business owner.
One business name trademarking tip: before you get invested in a name, search thoroughly to see if someone else is using it.
Register Your Business with the Government
Your business isn’t official until you register and license it with all the appropriate governments.
You may need a variety of licenses with the federal, state, and territory authorities. Fortunately, the government has made it easy to find out what you need.
The Australian Business Licence and Information Service (or ABLIS) will tell you everything you need to know about your licensing paperwork.
Register Your Business for Taxes
One of the fastest ways to get into trouble as a business owner is to not pay your taxes correctly. This starts from the beginning when you register for taxes.
The first step is knowing what types of taxes you need to pay. All businesses should have the following:
- A Tax File Number (TFN)
- An Australian Business Number (ABN), which is recommended but not required
- An Australian Company Number (ACN)
Other taxes will depend on your company’s function. For instance, if you sell goods or services, you’ll register for the Goods and Services Tax.
If you’re paying any salaries, you’ll register for Pay As You Go Withholding, and you may also need to register for payroll taxes and fringe benefits taxes.
There may be additional taxes depending on the nature of your business, so do your research thoroughly.
Choosing Legal Real Estate
Your facility can be a major business expense, and you need to handle it carefully.
Whether you’re renting or buying, it’s a good idea to have a lawyer review any contracts before you sign them. For instance, you need to make sure there aren’t provisions that prevent you from using the equipment or practices you need.
If your business is small, a work from home business can be an easier option. Just make sure your lease, homeowner’s association, or other requirements don’t prohibit it.
Purchase the Right Insurance
There are some types of insurance that are legally required for certain businesses in Australia. For instance, workers compensation insurance is required if you have employees. If your company owns a vehicle, you’ll need third-party personal injury insurance.
There may be other required insurance policies depending on your business.
Finding a Lawyer
It’s not required, but with the complexity of starting a business, getting more info from a lawyer is a great help. While they can be expensive, a lawyer could save you a world of financial and legal hardship down the line.
Starting on the Right Foot
How you start your business in Sydney can make the difference between success and failure. The guide above can help your company get started on the right note.