Opening a business in Australia sounds auspicious, but at the same time, it could be quite scary, especially when you don’t know where to start. Have you thought about how many tiny details one needs to work through to build a strong foundation? It does include choosing the right structure for your enterprise and protecting your brand, but most importantly, covering all legal aspects.
Well, with the right knowledge and professional assistance, you can avoid those little mistakes that cause nothing but loss! Contact professionals, and if you are interested to learn what it actually takes to start with certainty? Here goes.
1. Choosing the Right Business Structure
The major decision affecting you is your business structure. Is it better to act as a sole trader, as a partnership, as a company, or as a trust? Each has tax implications, different risks when it comes to liability, and different reporting necessities.
For example, being a sole trader is the simplest, fastest, and cheapest mode of registering, but it doesn’t give any protection against personal liability. A company, however, offers limited liability for its members but comes with much steeper compliance requirements. This will largely depend on your comfort level regarding risk, control, and scalability.
2. Registering Your Business
The most important thing is to make sure that everything is set up before applying for an ASIC-registered business name, obtaining an Australian Business Number (ABN), and registering for GST, if required by the intended activities. Otherwise, these essentials would just end up making things difficult when invoicing clients or dealing with suppliers.
Are you all set to pick a business name? Then, hurry to ASIC to check availability before diving into those business cards!
3. Protecting Intellectual Property
Like your brand, valuable assets need protection. Without a trademark, however, defending the identity of your brand and yourself from competitors could become complicated in the unfortunate event of a dispute. Basically, registering trademarks protects your business name, logo, or slogan in its original language from imitation by competitors.
Suppose a competitor copied your logo. And how would the consumer tell the difference? That is why it is necessary to trademark as early as possible.
4. Contracts and Agreements
A contract needs to be equally well-drawn for anything from supplier to employment contracts. In the short term, sitting down for a handshake or using a generic template might appear to give you an edge, but in the longer term, these pitfalls will form the basis of disputes. Clear contracts spell out roles and responsibilities and provide mechanisms of redress in case something goes wrong.
You just find yourself about to sign a long-term contract, stop and ask – “Do I fully understand every single clause?” If not, consult a lawyer before you proceed.
5. Compliance and Licenses
You might need specific licenses or permits on the basis of your industry, like food handling, child-caring, or financial service industries, and noncompliance does lead to fines or closure of your business. So, regularly check for industry regulations to stay on the safe side.
Conclusion
Establishing a business is more than having a brilliant idea. It is about building on a secure legal basis. Tackle structure, registration, intellectual property, contracts, and compliance issues early so that you are destined for future success. All you have to do is remind yourself that having expert legal advice now will prevent many headaches down the road. For individualised assistance, contact Velocity Legal or another leader – they understand the Australian business landscape and will help you launch with confidence.
