Running a business from home

[RooFlyer]

$495 to register online* but yes, the ongoings add up and need to be factored in.

ASIC annual filing fee $290, accountant for annual tax return (I effectively doubled my annual tax return costs - personal and seperate company return).

I'm pretty sure you couldn't do it on-line when I set mine up - now I recall, this was my all-up cost to Accountant to get me going (including his fee, MYOB (then) etc), not just setting up the company.

And yes, the separate tax return is starting to hurt now its just a trivial business.

Is there a secondary market for company shells?

 

[OZDUCK]

I'm pretty sure you couldn't do it on-line when I set mine up - now I recall, this was my all-up cost to Accountant to get me going (including his fee, MYOB (then) etc), not just setting up the company.

And yes, the separate tax return is starting to hurt now its just a trivial business.

Is there a secondary market for company shells?

There certainly used to be.

In my early days of being a Commercial Intelligence Analyst in Customs for a few years I was certain I had run across the Professor Moriarty behind many of the more suspect companies we dealt with. His name was associated with a number of them. Unfortunately when I showed my find to someone else they pointed out that the name I was finding 'everywhere' was an accountant whose business operation was to register company shells using his and his assistants names as Directors, Company Secretaries etc. When someone was setting up a new company the accountant sold the 'shell' to them so they could avoid all the running around and paperwork. It had apparently been a thriving business model for years. I slunk away highly embarrassed.

 

[cosi]

A great starting point, with a wealth of free information will be available from your state government small business agency.

I see you are in NSW, so this is the link.

Business support

 

[blackcat20]

Vistaprint is good for business cards, postcards etc.

 

[MARTINE]

Also clarify from your accountant if that part of house used as a business wont be liable for proportional CGT down the track (even if you dont claim expenses)

 

[LostRedditor]

I knew I came to the right place. Thanks for everyone's input. I have update my checklist to include

• Make a budget, albeit basic one to start
• Check with local council regulations re. clients in home
• Look into home and contents insurance policies re. customers at home
• Look into car insurance re. occasional business use
• Public Liability
• Set up business banking account
• Ask accountant/biz adviser about GST
• Freebies
• Biz cards

b) Web Page - grossly overrated, mainly attracts vermin: competitors and time-wasters trying to sell you stuff

In this business it's very common to have a web site, and it's also beneficial to demonstrate her past experience working with children (and adults) with disabilities both as a speech pathologist and then again as a singing teacher. I've already made most of it anyway, just need her to write some content

Will the increased noise disturb anyone ?

This is something I hadn't considered but I can't imagine it will. We're not exactly wall-to-wall. The closest neighbours are hardly ever home

Local schools a good one to approach about her offering, from what I have seen specialist music teachers/lessons at schools is becoming less accessible.

Great idea!

Looks like you may have students under 18 years old. You will probably require WWC and maybe even WWVP checks/cards for all adults who reside at your home.

Good point, both are already covered from her previous gig. Will check expiry dates though. Cheers

will she use the car for business purposes eg going to shops to buy small treats for students, buying music, visiting potential clients, going to schools etc for demonstration days, etc? That too needs to be advised to the insurer. Thinks about the way you’ll claim for business use of car - you will need to keep records whichever way you go, so check with your accountant.

Had not considered this, will look into it

Offer to do a session at a play group for the really little ones - maybe charge a gold coin per child just to get started

I like this idea, will run it by my partner.

For accounting, I'd strongly recommend Xero

Will you need to register for GST?

I've used Xero as an employee in the past, never as a business. Thanks for the +1
Will check with accountant re. GST

 

[Mwenenzi]

GST threshold is $75,000 per year. (some fine details)
If a choice of earning $74,000 or $76,000 earn $74K. Not worth the hassle and cost of "earning" that $2,000.
Giving music lessons would expect will be few taxable GST inputs to claim back the 10% on those. Mainly cost of labour/profit/wages

ATO link-->Registering for GST
But ask your accountant

 

[Seat0B]

And further to GST, if you are not registered for GST then you will still be able to claim the full cost of business purchases (including the GST you paid) as a tax deduction, so you really don’t miss out on much at all.

 

[Pushka]

I've found businesses are transitioning to Facebook and Just a very basic website, which these days can be created yourself anyway. KISS principle. If using a website then you will need to register a domain name and a hosting package which can then be configured for business emails.

Yes, Xero seems good option.

 

[LostRedditor]

Great, that settles it for us. She's only looking to work a bit as we're still rearing kids. She'd only be looking to pull in half of that for a while. Thanks @Mwenenzi

 

[LostRedditor]

I've found businesses are transitioning to Facebook and Just a very basic website, which these days can be created yourself anyway. KISS principle. If using a website then you will need to register a domain name and a hosting package which can then be configured for business emails.

Yes, Xero seems good option.

Already done, Web site is live, just unlisted. Just a basic page describing her services, professional background, contact form. We may be expanding the business in a few years to include a catalogue of videos behind a paywall, so definitely want to have the website ready

 

[love_the_life]

I am not sure if it has already been covered but I am wondering if you have considered the additional protection if you set up a private company and not operate as a sole trader. Especially if you are hoping to expand in the future.