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Starting your own business can change your life forever. It can give you the flexibility to work at home, in an office, or shared workspace. It also allows you to set your own hours, choose your staff, and pursue the career path of your dreams.

That said, starting a business is not an easy task. When setting up a new business, there are important matters you will need to consider such as: –

 

  1. Choosing a business structure

You will need to decide the type of entity for your business, that is if you would like your business to be registered as a company, a partnership or a sole trader.

 

Company

Partnership

Sole Trader

A legal entity that separates from its directors and shareholders.

 

What this means is that it separates the actions of an organisation to the actions of the directors and shareholders. it protects them from being liable for the company’s actions

A number of people or entities running a business together, but not as a company.

An individual trading on their own.

 

  1. Registering for your Australian business number (ABN), goods and services tax (GST) and business name
  1. Setting up record keeping and accounting systems
  1. Setting up a Trust

You will need to consider your assets and estimated profit of the business to determine whether your business requires a trust. A trust is an entity that holds property, shares or income for the benefit of others. Income can be distributed at the trustee’s discretion to beneficiaries with the lowest marginal tax rates to minimise the aggregate tax beneficiaries pay. The trust’s beneficiaries pay tax on income they receive at their own marginal rate. As the beneficiaries do not own the trust assets, there is scope for protection from the third-party creditors of a beneficiary.

 

  1. Protecting your intellectual property

You may also want to consider protecting the property or a productive new idea that your mind creates. This can include an invention, design, brand or even the application of your idea as these are the things that differentiate you from your competitors. 

The most common IP rights are as follows:

  • Patents protect inventions and new processes
  • Trade marks protect logos, words and other branding
  • Copyright protects art, writing, music, film, and computer programs
  • Registered designs protects the visual design of a product
  • Circuit layout rights protect layout designs or plans of integrated circuits used in computer-generated designs
  • Plant breeders rights protect the commercial rights of new plant varieties.

 

If you would like to start a business and find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an online interview.

  

 

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.