Checklist for people starting a new business

Getting started

Do you know…	Why this is important	Where you can find out more
If you are in business?	Make sure you are in business and your activity is not regarded as a hobby. If you are in business, you need to declare any business income you earn. You can claim deductions for some expenses you incur in running your business.	Tax basics for small business. The ABN entitlement tool can help you determine if you are entitled to an ABN.
What legal structure is best for your business?	Sole traders, partnerships, companies and trusts have different legal obligations and are taxed differently. We cannot provide you with advice on what structure to choose; however, we can advise you how tax applies to your chosen structure.	Tax basics for small business. Visit www.business.gov.au Talk to your tax adviser.
If you need a tax file number?	If you operate as a sole trader, you can use your individual tax file number for your business. If you operate as a partnership, company or trust, you must also have a business tax file number.	Tax basics for small business. Companies, partnerships and trusts can apply at www.abr.gov.au
If you need an Australian business number (ABN)?	You don’t have to have an ABN, but it may help you to register for GST and other business tax obligations. If you choose not to have an ABN, other businesses can withhold 46.5% of payments to you.	Tax basics for small business. Visit www.abr.gov.au to complete and lodge an online application for: an ABN for sole traders, partnerships, company or trust, or   a TFN for a company, partnership or trust. The ABN entitlement tool can help you determine if you are entitled to an ABN.
How running a business at or from your home affects your tax?	Using your home for business can affect the capital gains tax exemption that normally applies. There are also rules about calculating expense claims.	Tax basics for small business. Home-based business
About the tax concessions available to small business?	You may be eligible for a range of tax concessions if your business has less than $2 million turnover.	For help with getting your business started: see Small business entity concessions essentials   refer to Tax basics for small business, and Concessions for small business entities - overview   phone us on 13 28 66, or   talk to your tax adviser.

Last Modified: Wednesday, 4 November 2009