I am so sorry to disappoint my readers! I haven’t been able to post in my blog recently. .All my attention was focused on actually starting my handmade business. .just like many of others. .
I had to consult my tax agent to seek proper advise which was the best way to find out more about the implications of starting a business .
I did find out very useful information..
Just to list the same in a nut shell – as follows
1. If starting your own business, you can get an ABN. If you are maintaining your activities at a hobby level then you don’t have to get the ABN. The difference here is the intention.
2. Once you decide to develop your activities in a business mode, then ABN is the first step. You would need to get/provide TFN(tax file number) in order to obtain ABN.
3. If you are already having the TFN (personal one from your other stream of income) Then you can provide the same. There would not be any impact to your tax returns on your existing income stream. The income gained by this business would be taxed as additional income just like interest gain by a term deposit.
4. If you are earning more than 20k or so..then you need to register for GST
5. Accounting is very important once you have obtained ABN.
Again please note that this information is quite local to Australian laws..Please contact your local tax agent or agency to get more visibility and more details in regards to starting your own business.
Well that’s what I learnt over last couple of weeks. .
I am so excited to announce that I do have taken the bold step of starting my own handmade business. .
Have set up my Facebook store too..
Wish me luck !!