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What is the first step to register a business name?
The client must register it with the Australian Securities and Investments Commission (ASIC) through the Business Registration Service.
What is an Australian Business Number (ABN)?
An ABN is a unique 11-digit number for tax and business purposes.
When must a business register for GST?
A business must register for GST if its expected revenue is above the $75,000 threshold.
What are the characteristics of a Sole Trader?
A Sole Trader is the simplest structure where one person owns and runs the business, keeps all profits, and has personal liability.
What is the legal requirement for a Partnership under the Partnership Act 1985 (WA)?
General partners have unlimited liability for debts, and a written agreement is recommended.
Why is a Small Proprietary Company more complex than a Sole Trader?
It requires more paperwork, like annual financial reports to ASIC, and has legal obligations under the Corporations Act 2001.
What is recommended for clients looking to minimize paperwork when starting a food truck business?
A sole trader structure is recommended due to lower costs and simplified reporting.
Name one source of external finance available to the client starting a food truck.
A secured business loan or a personal loan.
Why is a secured business loan advisable for the client?
Using their townhouse as security can lower interest rates and makes it easier for banks to approve the loan.
What factors do financial institutions consider when approving finance?
Collateral, Credit History, and Business Plan.
What is the difference between a Sole Trader and a Partnership?
A Sole Trader is owned by one person, while a Partnership involves two or more people sharing ownership and responsibilities.
What legal documents are required to start a Small Proprietary Company?
A Company Constitution and registration with ASIC are required.
What is the primary benefit of registering a business name?
It legally protects the name used by a business from being used by others.
What taxes must a business in Australia be aware of?
Goods and Services Tax (GST) and Income Tax.
What is limited liability in a company structure?
Owners' personal assets are protected from business debts and liabilities.
Why do businesses create a business plan?
To outline goals, strategies, and operational plans for the business.
What is the purpose of an ABN?
To identify the business for tax and other official purposes.
What is a secured loan?
A loan backed by collateral, such as property or assets.
What is the threshold for GST registration?
$75,000 in expected annual revenue.
What is an ASIC?
The Australian Securities and Investments Commission, which regulates business and financial services.
What is the role of ASIC in business regulation?
ASIC is responsible for enforcing company and financial services laws to protect consumers, investors, and creditors.
What is a business structure?
A business structure determines how a business is organized, including its legal framework, liability, and taxation.
What is required for an ABN application?
Applicants must provide identity verification and details about their business structure and activities.
What is the significance of a Business Name Registration?
It ensures that a business's name is unique and not identical or similar to an existing name.
What is GST?
Goods and Services Tax is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia.
What is the process for dissolving a Partnership?
Partners must agree to dissolve the partnership, settle debts and obligations, and file necessary forms with ASIC.
What risks are associated with being a Sole Trader?
Sole Traders face unlimited liability, meaning personal assets can be used to settle business debts.
What advantage does a Company structure provide?
A Company structure offers limited liability, meaning personal assets are protected from business debts.
What are the steps for registering for GST?
Business owners must apply for GST registration through the Australian Business Register (ABR) if eligible.
What are the typical costs associated with starting a business?
Costs may include registration fees, licensing, equipment, marketing, and ongoing operational expenses.
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