General Business Checklist

Business Checklist

Checklist for your new business
There are many considerations for your new business depending on what your business does.

Our other fact sheets go into more detail on some important topics, so just hit the hyperlink to go to that fact sheet when mentioned here.

Main Considerations

• Keeping records and opening a bank account
• Requirements for employees
• Choosing a business structure
• Insurance requirements
• Trading & Business Names

Keeping records and opening a bank account

Keeping good records is the backbone of any good business. This is not only for tax purposes, but for management and profit improvement purposes. There are many options available for keeping your records such as a manual cash book, computerised accounting software (eg MYOB), or by engaging a bookkeeper or your accountant. The way you keep your records is usually proportionate to the structure and industry in which your business operates.

When you start your new business, the most important start to your record keeping should be opening a bank account that is used strictly for business. It is important the name of the bank account is the name of your business entity. The bank account is the first records asked for by the ATO in the case of an audit. Accordingly, should anything happen to your other business records, your bank account can be relied upon to construct your transactions as long as it is used strictly for business income and expense transactions.

Requirements for employees (where applicable)

The requirements and obligations of having employees are both complex and strict. Our blog on Employing Staff gives a lot of detail on this topic. Your main considerations is ensuring you comply with four things – withholding tax, superannuation, workers compensation insurance and awards or contracts. These things all require strict time deadlines so you need to be organised for when they fall due. Because the compliance with employing staff is quite involved, commonly the more complex business structures that offer risk protection are more desirable.

The ATO also provides a good guide on some of these topics at www.ato.gov.au – employing staff

Choosing a business structure

Choosing the best business structure is a trade off of risk protection, record keeping, tax flexibility, compliance issues and operating costs. You can see a graphical representation of these trade offs for sole traders, partnerships, trusts and companies on our Business Structures blog. Combinations of these structure types are available and can offer the advantages of more than one structure alone, but you are better to discuss your intimate details with your accountant to see where these are beneficial.

Insurance Requirements

Although you may choose a business structure that provides you with some risk protection, it is advisable that you contact an insurance broker to provide you with insurances for public liability, professional indemnity and perhaps income protection.

You may find in your industry that there is a professional or government association that provides the appropriate insurances for you, such as the BSA for businesses in the building industry in Queensland.

Workers compensation for employees, as previously mentioned, is a type of insurance which you can read more about at: www.business.gov.au – workers compensation

Trading & Business Names

It’s important to note that a trading or business name is not the basis of your business structure – its quite the opposite. It’s an extension of your structure’s legal name (eg John Doe T/A Carpenters Are Us). In this example, the trading or business name is “Carpenters Are Us”. No matter what business structure you choose, you only are required to register a business name if you don’t want any other business to use it. If you use your own name in the business name (eg John Doe Carpentry), then generally you don’t need to register the name.

For the full rules and instructions on what and how to register a business name in Queensland,visit:www.business.qld.gov.au – registering business names

For a more personalised analysis of considerations for your new business, please email [email protected] or arrange an appointment.

This fact sheet is provided as general advice and does not cover every possible situation and related consequence. Further investigation should be done in relation to your own particular circumstances with an appropriate professional, and hence Startusup accepts no liability for actions carried out that rely on the information provided in this fact sheet.

Watch these videos on Small business Tax basics and Important obligations