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A Complete Guide To Business Setup

 Having a business idea is great but what next? To turn your business idea into reality you must have a concrete plan that could help you take realistic steps towards your business setup. It is better to be prepared when you are planning to set up your own business or things might not move as expected.

Many entrepreneurs have sound business ideas but they are unable to figure out what all it takes for the business setup. Amongst the various tasks that you need to consider while setting up your business, the most difficult task that you would need to do is decide the type of structure for your business. While there are different structures that you can choose for your business, every structure has its own pros and cons. If you are not sure which business structure might be right for you, don’t worry as this article will help you out with each such structure. Not only business structures, but you will also get to know everything you need to know about business setup in Australia.



Which are the options when it comes to business structure?

When setting up a new business, you would need to decide the structure you want for your business. This is a very important decision that you are going to make for your business since it will have a lot of implications for your business. The type of business structure that you can choose from include sole trader, company, partnership, or trust. Here is a brief about each of such structures. Let’s dig into the details!

Sole Trader: As the name already describes this business lets you control your business individually. You invest in your business and enjoy the returns. If your business is less complex and you want the simplest business structure you should set it up as a sole trader.

Company: Company has a separate legal existence. The ownership of members in a company is determined by the proportionate holding held by them and they have limited liability. You might find this structure a bit complex because a lot of formalities are involved but this structure is opted by many businesses due to its legal acceptance globally.

Partnership: If you want to work in a partnership all you need to do is to enter into a partnership agreement with the persons who you want as partners. Based on the profit-sharing ratio that you agree with your partners, the profits and losses would get divided. This business structure would be suitable for you if you along with your prospective partners have some common objectives.

Trust: This business structure comes with associated tax benefits on income splitting. The trustee of the trust is held accountable for the activities of the trust.

Yes, the business structure is the most important decision that you would make when setting up your new business. But there are a couple of things more that you would need to take care of. To start with you would need to decide some unique name for your business so that your business gets its unique identity. Once your thoughts are final on the business name you can get it registered so that you have the sole right over such name. Believe it or not, getting a business name registered is very important. Your business websites, logos, advertisements, and other designs all are going to include the business name after all. Talking about websites, how can we forget domain names! We suggest that you get access to your domain name so that customers can reach out to you and your business finds recognition. For that to happen, you must choose a domain name that depicts your business in the best possible manner.

A new business setup would definitely require some initial business registrations such as ABN, GST, PAYG, and so on. Check what all tax and business registrations apply for your specific business and get these done at earlier. It is better to stay compliant to avoid any penalties. Just after you set up these initial things you should also consider taking other important decisions such as business financing, software to be used, recruitments, vendor selection, and much more. The early you start acting, the more will your business succeed. 

 


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Comments

Startup Zone said…
This comment has been removed by the author.
December 27, 2020 at 8:25 PM
Startup Zone said…
thanks for this info about the business setup in Dubai best q&a to help for company formation.
December 27, 2020 at 8:28 PM
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