Opening a Business

[dougie210]

Hey guys,
I don't know if this is an on topic or what ever you want to call it, but please don't get angry as this thread is just one i want to know, in the future, i hope to own a small business involving reptiles. I would like to breed and sell reptiles, and a few supplies and things for them, But the thing is, what things would you have to do and stuff to make a small business, not like a gigantic store i mean like a store just say as big as a "master bedroom" kinda thing.But then at your home thats where you breed your reptiles.But any way back to the point. What things do you need to do and stuff to open up a small business, with supplies, stock reptiles to start you off and like to open a "business" ???
Thanks,
Chris

 

[dougie210]

bump

 

[Riley]

To get the title 'business' or company you have to apply for a name registration and pay a certain amount to be classified as a business etc ( think). yeah i think theres heaps of stuff you need to consider and do etc

I use a business plan which helps me heaps with sorting out everything to do with the business etc.. pm me if u want a copy.

 

[Smirnoff]

I think you would be better off breeding on a large scale, that way there is no taxes and no business needed!

 

[Mudimans]

hows a hobby work with tax. i imagine if your making $30000 a year selling snakes the tax man is going to want to know about it. Is there a point where it turns from a hobby to an income

 

[Hickson]

hows a hobby work with tax. i imagine if your making $30000 a year selling snakes the tax man is going to want to know about it. Is there a point where it turns from a hobby to an income

This question has been queried and debated snce this site began, with lots of different viewpoints.

The short answer is get a good tax agent and follow his advice.



Hix

 

[mebebrian]

Where did willa6 go?

 

[callith]

Where did willa6 go?

thats what i've been thinking lately

 

[daniel1234]

I think you'll find it just grows as you do. Over here, the guys I brought my first MD from run it from there shed. They sell a few snakes, and thrermostats and they just add to it. Not very good sales people, as I only found out about the thermostat when I got the snake home. You have time on your side, as a bit of herp sales at your age has gotta be a good thing and better than junior wages.
Some people might but I don't really think you will just one day open shop. One day you will realise that you need to because your bedroom or whatever is just to small. Start with what people need until you build up to being able to provide what people want (all the bells and whistle stuff)

 

[Hsut77]

Back to the original question. The first thing you need is Capital ($$) the second thing you need is Capital ($$$). Most business fails because they don't have enough money to pay suppiers on time, meaning, customers do not get goods or they have no stock on hand for immidete sales.

In my line of work I see Mum and Dad businesses, as well as the 'Big Guns' fail for this very reason.

Have a search on line for how to do a Business Plan, and start saving. Good idea though, as the hobby grows we will need more and more people with Herp businesses to supply demand.

 

[Colin]

hows a hobby work with tax. i imagine if your making $30000 a year selling snakes the tax man is going to want to know about it. Is there a point where it turns from a hobby to an income

http://www.ato.gov.au/youth/content.asp?doc=/Content/66884.htm

If you are carrying on a business:

Any money you earn from this activity is generally assessable for income tax. You are generally entitled to claim tax deductions for any allowable expenses you incur in earning this income, and if your activity results in a loss, you may be entitled to offset this loss against other income or carry it forward to offset against future income, and therefore reduce the income tax you might have to pay in the future.

If your activity constitutes a hobby or recreation:

Any money you earn from this activity is generally not assessable income. You are not entitled to claim tax deductions for any expenses you incur in carrying out this activity, and if your activity results in a loss, you are not entitled to offset this loss against other income or carry the loss forward.

 

[Hsut77]

For tax, there are no hard and fast 'rule' that determines if you are conducting a business or hobby. It's all subjective. There are guide lines, but a ruling from the ATO is the only way to be 100% sure. We operate under a self assessment system and the ATO expects that we as tax payers will do the right thing, including getting the correct taxation advice. If you answer yes to any of these questions you will need advice.

• Does your activity have a significant commercial purpose or character?
• Do you have more than just an intention to engage in business?
• Do you have a purpose of profit as well as a prospect of profit?
• Is there repetition and regularity to your activity?
• Is your activity carried on in a similar manner to other businesses in your industry?
• Is your activity planned, organised and carried on in a business-like manner?
• Does your activity have characteristics of size, scale and permanency?
• Would it be true to say your activity is really better described as a business, rather than a hobby, recreation or sporting activity?