Running your own online business might pay off in the long term, with Australia’s burgeoning ecommerce industry expected to produce more than USD 32 billion by 2024. Already, one out of every ten items is expected to be purchased online. And, despite the limits imposed by the global coronavirus epidemic, ecommerce businesses today have a plethora of options to create revenue. There’s no reason why you can’t have a piece of this profitable market, but getting started is difficult. But don’t worry, we’re here to assist! Unlike many other countries, Australia requires you to register your business before registering a.com.au domain name. It is also critical to select the appropriate business structure and type, which necessitates careful preparation and attention to detail. We’ve created an in-depth guide on how to start an online business in Australia to help ease your move into the world of online sales. First, we’ll go through the processes that every startup must do in order to operate lawfully. Then we’ll go through ways to make your website stand out.
The Fundamentals of Starting a Business in Australia
Before you can even consider about trading online, you must complete the following tasks:
1. Determine the best business structure
There are four business structures in Australia: sole trader, company, partnership, and trust. Choosing the right structure is critical since it has a direct impact on:
- Your degree of control
- Obligations under the law
- Requirements for health and safety
- Personal responsibility
You will accept complete responsibility for all legal aspects of your business if you register as a Sole Trader, but you will be able to recruit staff. A company’s legal existence is distinct from that of its stockholders. If you want to create a business with other individuals, you should probably register it as a Partnership. If you possess assets for the benefit of another person, you may need to form a Trust.
2. Obtain your Australian Business Number and register your company name
You cannot legally function in Australia unless you have an ABN, which is a unique 11-digit number that identifies your business. You can register your business name, claim taxes, apply for grants, get a website, issue invoices, and order items from other businesses if you have an ABN. While you can register your company name and apply for your ABN separately, doing both at the same time is more convenient.
3. Obtain an SEO-friendly domain name
You must now obtain a.com.au domain name that is connected to your business, makes you easily recognised, and assists you in ranking highly on search engines. You can verify whether the domain you want is available using online tools. Choosing the right domain name is critical to the success of your online endeavors. If you use a misleading name, your clients may have difficulty finding you, and you may need to change your business name to fix the problem. A SEO Melbourne company can assist you in selecting a domain that will allow your target market to locate your website.
4. Think about financial sources
Unless you already have the necessary cash to pay your costs (even some you may not be anticipating), you may want to consider other sources of funding. Before you apply for a small business loan, look into the numerous government financing possibilities for start-ups in NSW or your local region. Grants are available to help you in a number of aspects of your business, including:
- Sales and marketing
- Purchasing of equipment
- Imports and exports
Discussing your requirements with a lawyer or accountant will help you secure capital for your business.
5. File your taxes
Taxes are unavoidable if you wish to lawfully trade online in Australia. To prevent fines, you must register for the right taxes, therefore speak with an accountant before making any major decisions. An accountant can also advise you on how to reduce your tax liability. You may be required to register for the following taxes:
- Pay as You Go (PAYG) Withholding Tax: If you need to withhold money for tax purposes, such as covering salaries, this is the option for you.
- GST (Goods and Services Tax): Required for any business with an annual income of more than $75,000.
- Fringe Benefits Tax (FBT): If you give employee benefits such as company cars, you must register for FBT.