An ultimate checklist how to start a sole proprietership

An Ultimate Checklist: How to start a Sole Proprietorship?

Since choosing the right business structure is a crucial decision, I cross-checked all the possibilities that could help me grow my business across the globe within a specific time span.

Among all the available business structures, I chose sole proprietorship because of its unmatched benefits.

If you are also planning to start off your sole proprietorship business, then you should consider some of the key factors, especially if you are living in Melbourne, Australia. Below is a complete checklist to help you run a success sole trader business with ease.

What is a sole proprietorship?

A sole proprietorship or sole trader is one of the most popular business structures. It basically an unincorporated business runs by a single person who is responsible for paying personal income tax on profits (earned from the company).

The ease of formulation, easy to set up or take apart, and independent decision-making processes are some of its advantages that keep encouraging small business owners to use it to create a unique brand image.

Consider the following key factors:

1. Determining a Business Name A business name plays a vital role in deciding your branding and marketing aspect. Being a sole trader, you are free to decide the most appropriate name for your business. It can be your own personal name or something that can reflect its real essence.

If you are using your own personal name, there is no need for any registration. In case, you are using a fresh and new name, then you will need to register your business name.

2. Search Availability of Name Under this, you will need to find out whether your selected business name is trademarked or not. Make sure it is not used by another entity at any cost – it should be unique.

You can search the Australian Trade Marks Online Search System (ATMOSS) to know that your business name is already registered as a trademark. Once you are done with this, you can pass through the registration process.

3. Tax Registrations It includes multiple aspects, such as: (a) Tax File Number Create a Tax File Number (TFN) so that you can use it while lodging your income tax return. (b) Australian Business Number (ABN) An ABN is a unique 11 digit number that lets government and community know about your business. Though an ABN can’t take a place of TFN, it can be used for various taxes and other business implications. (c) Goods & Services Tax (GST) Don’t forget to register for GST if your current annual turnover is $75,000 or more.

4. Obtain Licences and permits Once you are done with the registrations, you can find all the local, state and federal licences and permits that can help you run a business, without any complication.

5. Protect your name To sustain your credibility and integrity, make sure you protect your unique business name, idea, concept and thought. You will need to protect your trademark, patent rights, and design rights.

Once your sole trading business starts functioning and generating sales, you can either acquire a financial management team or hire the Active Tribes to get your work done in an effective and efficient manner.