I want to start a business, what do I need to do?

Lease

Where you  locate your business is important.  You should ensure that your lease is written correctly, so you do not have to move or change some important part of your business operations.  Before relocating your business ask for a copy of the proposed or new lease and discuss each clause in it and its implications with your Solicitor.  



Is it a retail lease or commercial lease?  The difference does matter to you.

Also, consider if you can you afford the bond, the monthly lease payments and final repairs?

Business Structure

Decide on what kind of trading entity you should have.  For example: you could choose from, a sole trader, a partnership, a Pty Ltd company, a trust, an association, community organisation or even a public company.  It depends on the business you wish to conduct, your tax, commercial and legal needs and the number of ‘owners’ involved.  



Once that is decided, you need to look at the ‘internal’ contracts you need, like a shareholders agreement or business partnership agreement, something to give you and your business partner(s) a framework for running the business, settling disputes and getting out of or selling the business.

Business Name

Choose a business name that no-one else has used before, by looking at ASIC’s website: http://www.search.asic.gov.au/gns001.html; then register your business name with Fair Trading.

Tax

Start with applying for an ABN at: http://www.abr.gov.au/ABR_BC/, and then go to the tax office web site for details on the forms you need to fill in, at: http://www.ato.gov.au/

Business contracts

Next, you should document the way you deal with suppliers and clients, and state your terms of trade.  These include quotes & tenders, supply contracts, client order forms & waivers, bank loans and guarantees, website privacy statements and, Web & I.T. software & services contracts.

Checklist for business agreements

The following handy guide, is a starter for setting up or improving your internal business agreement with business partners and shareholders:

#	Topic	Comment
1	Structure - is a partnership, company or trust appropriate
2	Parties - individuals, companies or trusts
3	Guarantee - by individuals of obligations of a partner which is a company or a trust
4	Date of commencement - New or continuing partnership
5	Scope of business - How is the business to be described
6	Business name
7	Premises - Leased or owned?
8	Duration of business?
9	Assets - Partnership or individual assets?
10	Profits – how divided?
11	Directors fees and shareholder dividends?
12	Incoming partners / shareholders – business valuation
13	Payments to outgoing directors and shareholders
14	Retirement – when and how?
15	Death - consequences
16	Expulsion - In what circumstances can a partner be expelled?
17	Sickness – what happens if you are sick?
18	Restrictive covenants
19	Management issues – internal controls
20	Dispute resolution