If you’re thinking of starting off a new business or you have just recently began a new business enterprise then it is not an easy path ahead of you but with hard work and determination, there is no reason why you cannot reach your business goals.
You’re going to come across many different hurdles and lots of red tape along the way and it is important to keep a calm head and to try to negotiate your way around them as best you can.
Your goal here is to build a business that can expand and that will lead to a much wider customer base and increase profits. The thing about many businesses throughout Australia is that they think they are protecting themselves by remaining as a sole trader, but the opposite is actually true. By continuing to be a sole trader, you’re not protecting what you have worked hard for and you may lose it if you find yourself in a situation where you have to pay out a lot of money.
New business owners have a notion in their head that governments encourage them to register their businesses because it is of benefit to the government and not to them. Again, the opposite is actually true because you get a lot more protection when you go through company registration as it gives you a level of protection when it comes to your liability. It doesn’t make sense to jeopardise all of your hard work and all of your plans because you didn’t register your company. If you’re still a little on the fence about whether or not this is something that you would like to do then here are some of the benefits of registering any new business.
- Less tax burden – As was mentioned briefly before, you actually end up paying less tax as a registered company than you would as a sole trader for example. The government has deliberately put things in place to award those who register their businesses and they give them numerous tax breaks that will allow them to reinvest this money back into the business. Anything that you add to your business including fixtures and fittings, staff training and any other business incidentals can all be claimed back as a tax deduction.
- Limited liability – Your liability has to be limited because nobody knows what lies around the next corner and through no fault of your own you might find yourself in the law courts and an award might be made against you. If you are part of a partnership or you’re still a sole trader then you will end up having to pay out of your own pocket in the form of your home and any other assets that you have. This means that your family may be out on the street and so this is not an option for you, so company registration is the way to go.
If you haven’t taken the time to register your business yet, then it is something that you really do seriously need to think about.