What to look out for if you want to start a business from home - Craddock Murray Nuemann Lawyers Sydney

What to look out for if you want to start a business from home
Article Related Articles Related Services Publish Date: Jul 16, 2012 Many people dream of leaving their day jobs to start their own business at home because what’s not to love? You get to set your own work plan, manage your hours and avoid the morning traffic! According to Government figures, nearly one million people run a business from home in Australia but what some people may not realise is there are also a number of laws and regulations that apply to home run businesses which may include registration, licensing, taxation obligations, council zoning and development approval laws, insurance, and even compliance to mandatory industry codes of practice. Therefore, before anyone starts a home business, it’s extremely important to understand and consider all the relevant obligations that may apply to your business and failure to comply with the obligations may result in significant legal ramifications that can derail your dreams of becoming your own boss at home. Permits and approvals when starting your business A home based business is generally described as a commercial activity with a residential address, and can include art, craft and design services, providing lawn mowing services, catering or even starting a home based beauty parlour. Depending on the type of business that a person chooses to undertake, certain permits, licences and approvals may need to be obtained before trading can commence. So for example, if a person chooses to start a plumbing business, then an occupational licence may need to be obtained and it’s always a good idea to check the type of permits, licences or approvals that need to be sought before commencing with your home business, or you may be penalised. Some important starting off points when starting your business Business name registration is also an important first step for home businesses intending to trade under a company name (i.e. not the name of the business owner). Essentially, a business name is little a trading title that gives your business the right to trade under that name within the State or Territory where registration took place which lasts for three years, and is renewable. Home based businesses also have important taxation and record keeping requirements that you should be aware of and must be complied with. Taxation obligations may include: Income tax Goods and services tax Pay withholding Superannuation for any employees that may be hired Business activity statements (BAS) Income Tax returns Capital gains tax Business expenses Because home businesses have similar tax requirements to more traditional commercial enterprises, they can also claim for business expenses. There are two key types of expenses that often apply to home based businesses: occupancy expenses and travel expenses. Occupancy expenses concern the part of the home used for the business and can relate to any expenses such as rent, rates, home insurance, along with expenses associated with electricity, gas, cleaning and office furnishings. Business owners may also be able to claim for any trips taken away from home for business purposes. Insurance is another important issue to consider. Many people do not realise that standard homeowner policies do not generally provide cover for home business activities. While other policies may not cover other important matters, such as insurance of tools used in your trade, office furniture or computer equipment used for conducting any business activities, unless specified. Any person wishing to start a home business must ensure they have the correct level of insurance that can include public liability cover for customers and suppliers visiting your residence, insurance of business equipment, inventory, tools, office furniture or computer equipment and let’s not forget workers’ compensation if your home business is a success and you need to hire employees. By taking all the appropriate steps before you start your business will ensure that your enterprise has every chance for success. To learn more about the legal issues you need to consider when starting a home based business, contact your lawyer who will be able to help. Back A Brief Summary Of The Retail Leases ACT Craddock Murray Neumann Lawyers This article provides a summary overview of the main provisions of the Retail Leases Act (NSW) 1994 as they apply to commercial retail tenants and landlords. Applying for Business Loans This article considers the legal basics of getting a small business loan. For this discussion, it will be assumed that the loan is to either start a new business or to buy an existing one. A business loan should also be distinguished from a "line of credit" or an "overdraft", which are generally used to address liquidity issues for an existing business. Australian Consumer Law Since 1 January 2011, all Australian businesses have been operating under a new, national consumer law. The Trade Practices Act 1974 (Cth) has been renamed the Competition and Consumer Act 2010 (Cth). Schedule 2 of that statute sets out the new Australian Consumer Law (ACL). The ACL replaced provisions in 20 national, state and territorial consumer laws dealing with the obligations of business and the rights of consumers when selling goods and services. There is now a single, national set of rules. Being Sued Litigation is an unpleasant and stressful experience for a small business to go through. Most small business owners prefer to focus on what actually makes their business grow and operate, rather than dwelling on past mistakes or analysing small administrative details. Unfortunately, being sued can often be about very little details that happened in the heat of the moment. Business partnerships and third party liabilities Many Australian commercial entities are partnerships and often have to deal with third parties and outside entities in the course of business. Due to the nature of the partnership relationship, when an issue of liability arises, the actions of one partner may affect the other, and it’s important to be mindful of some of the liabilities that may occur in relation to outside parties that can potentially affect all persons involved in a partnership. Business partnerships and third party liabilities Many Australian commercial entities are partnerships and often have to deal with third parties and outside entities in the course of business. Due to the nature of the partnership relationship, when an issue of liability arises, the actions of one partner may affect the other, and it’s important to be mindful of some of the liabilities that may occur in relation to outside parties that can potentially affect all persons involved in a partnership. Buying a property: the Australian Dream Claiming your piece of the ‘Australian Dream’ is becoming harder and, with more at stake than ever, buyers should be aware that it will not be always easy nor problem free. Your best defence in keeping the dream from becoming a nightmare is to simply arm yourself with the best possible information and advice. Closing your Company This article considers how you can close your company. There are two ways of doing this, applying to the Australian Securities and Investments Commission (ASIC) to voluntarily deregister the company; or a members' voluntary "winding up" (closing down) of a solvent company. COAG to implement retail tenancy reforms Craddock Murray Neumann Lawyers The Rudd Government has announced it will work with State and Territory counterparts to implement its response to the report of the Productivity Commission's inquiry into the market for retail tenancies. Colleges, Registered Training Organisations (RTOs) and the Australian Skills Quality Authority On 30 June 2011 the Vocation Training and Accreditation Board (VETAB) which regulated the operation of Registered Training Organisations (RTOs) ceased operations and was replaced with a new national regulator – ASQA (the Australian Skills Quality Authority). Commerce gives small businesses a leg up Craddock Murray Neumann Lawyers The Chambers of Commerce have greatly assisted small businesses around the country in the last month to help them cope in the global economic crisis. 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This article outlines some basics of the effects of incorporation and provides an example of why it pays to be precise. Compete for your small business rights Competition is seen as a necessity in business - almost a necessary evil - but what happens when the "necessary" becomes obsolete? There is a fine balance between competition and unfair business practices to obtain competitive advantage. Small businesses can arm themselves with information on trade practices and the rights and obligations of business to ensure they are not the targets for unconscionable conduct or misuse of market power by larger companies. Considering debt with estate planning Debts do not just disappear when you die. Effective estate planning includes ensuring you are debt free when you die or alternatively leaving enough money behind so that your family are not left dealing with your debts. Consumer law and the providing of goods and services Any small business owners that have dealings with the public will have to adhere to the provisions of the Australian Consumer Law (the ACL) which is set out in Schedule 2 of the Competition and Consumer Act 2010 (the Act). With the introduction of the ACL, a regime of consumer guarantees have been implemented which deals with title, sale by description, acceptable quality, fitness for disclosed purposes, sale by sample or demonstration model, and consumer guarantees relating to service. Contracting Principles for Small Business Contracts are a fundamental part of operating a small business. Selling goods, purchasing materials, leasing premises and employing workers all involve entering into legally binding contracts. It is important to understand the essential elements of a contract so that you can develop solid business arrangements. A solicitor can assist your business develop best practices. It is highly recommended that you consult a solicitor prior to signing any contracts so that you understand both your legal rights and your legal obligations. This is particularly the case with respect to long term agreements or where the contract involves the payment or receipt of large sums of money. Debt Collection Letters of Demand For small businesses, it may be either too time consuming to pursue outstanding debts or impractical to employ a collection agency (owing the size or circumstances of the debt). However, a simple strategy is to issue a formal letter of demand, which serves as both a final notice and a precursor to taking the matter to court. Debt Recovery, Bankruptcy, Company Insolvency and Director's Duties Craddock Murray Neumann Lawyers Information and basic questions and answers. Deductions and depreciations for IT assets Many small businesses have come to rely on using information technology in the running of their daily operations. 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Federal Court finds Pizza oven provider misled small business owners - ACCC Craddock Murray Neumann Lawyers The Australian Competition and Consumer Commission (ACCC) has announced it obtained orders from the Federal Court finding pizza oven provider Original Mama’s Pizza and Ribs Pty Ltd, misled its small business customers about the contracts by which they obtained the ovens and the terms under which their finance contracts could be cancelled. Goods Shipping and the Law With many businesses beginning to take advantage of online trading, sending goods by consignment (a legal term for having them carried by someone else) is becoming much more common for smaller businesses. The advantages of online trading are clear, especially for higher-value items that would be costly to maintain in a traditional brick and mortar retail outlet. Shipping, however, is well-established area of law with practices that date back several hundred years, and has found new everyday exposure through consumer demand for convenience, specialisation and speedy delivery. Government moves to ease tax burden Craddock Murray Neumann Lawyers Small Business Minister Dr Craig Emerson has announced that the government will consider two new measures to simplify small business taxation and reduce small business compliance costs. Government Responds to Crisis with Resources for Small Business The Federal government has responded to the current global financial crisis in a variety of ways. Several of these measures are aimed at small business. GST and ABN Issues - Its more than just your BAS The Commonwealth Government implemented a value-added tax (known universally as the GST) in 2000 and terms such as ABN (Australian Business Number) and BAS (business activity statement) have become synonymous with small business accounting and tax. One interesting issue surrounding the GST system in Australia is that many small businesses are generally unaware of the depth of GST as a distinct area of taxation law. While most small business owners are capable of arranging their BAS filings (whether through a tax agent or on their own) a number of very complicated issues can arise when your business changes and takes a new direction. Guarantees, goods and small businesses: What every supplier of goods should be aware of t’s every small business owners’ worst nightmare when a product sold to a member of the public suffers from a ‘major failure’. All retailers want to stand behind their product and hope that their wares live up to what is guaranteed. However, there may be instances where a good suffers from a ‘major failure’, therefore, it is useful for small business owners to understand what exactly constitutes a ‘major failure’ under the provisions of the Australian Consumer Law (the ACL). 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This initiative removes the States' jurisdiction over consumer credit and attempts to create a licensing system that broadly mirrors similar ASIC licensing regimes (such as Australian financial services licences). NSW leads way on occupational licensing Craddock Murray Neumann Lawyers Federal Small Business Minister, Craig Emerson, says a review by the NSW Government that could result in the removal of unnecessary occupational licences would make the State more attractive to qualified people from interstate. Parental Leave and Small Businesses Parental leave, whether paid or unpaid, maternity or paternity, is an important issue within small businesses. Especially in light of the Government Paid Parental Leave 2010 scheme. Privacy Exemptions for Small Business Recent events regarding the abuse of privacy in the UK, namely the News of the World scandal and its subsequent closure, have prompted a wider debate about privacy and privacy legislation in Australia. To date, The Privacy Act exempts businesses with an annual turnover of $3 million or less. Telecommunications service providers, however, do have obligations under the Telecommunications Act, with regards to the use and disclosure of information, but this does not address issues such as collection and storage of personal information. In general, small businesses, are exempt. Privacy Exemptions for Small Business Recent events regarding the abuse of privacy in the UK, namely the News of the World scandal and its subsequent closure, have prompted a wider debate about privacy and privacy legislation in Australia. To date, The Privacy Act exempts businesses with an annual turnover of $3 million or less. Telecommunications service providers, however, do have obligations under the Telecommunications Act, with regards to the use and disclosure of information, but this does not address issues such as collection and storage of personal information. In general, small businesses, are exempt. Privacy Exemptions for Small Business Recent events regarding the abuse of privacy in the UK, namely the News of the World scandal and its subsequent closure, have prompted a wider debate about privacy and privacy legislation in Australia. To date, The Privacy Act exempts businesses with an annual turnover of $3 million or less. Telecommunications service providers, however, do have obligations under the Telecommunications Act, with regards to the use and disclosure of information, but this does not address issues such as collection and storage of personal information. In general, small businesses, are exempt. Reforms Ensure the Price is Right The ACCC is urging businesses to make customers aware of the total cost of goods and services, following amendments to section 53C of the Trade Practices Act 1974. 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Facebook fan pages are often a popular choice, enabling members of the public to post comments about a product or service. Some basic information for businesses who wish to develop an e-commerce strategy It’s fair to say that e-commerce has grown exponentially over the past few years, and many businesses may be considering some form of online shopping services in their retail offerings. Before initiating an e-commerce strategy, there are a number of basic guidelines that need to be followed for any person wishing to conduct business related transactions on the internet. Some tips on starting a business either as a sole trader or partnership Many people who start businesses, usually don’t begin with grandiose intentions of creating a massive corporation, but rather, are more likely to start a small business that is either a sole enterprise, or partnership. Although, it would be lovely to imagine that the little business we start, will turn out like Apple – which began life as a partnership. However, most people would be satisfied just to have a business to call their own, and a good starting point is either as a sole trader or in a partnership with other people. Strata Levies: Options for Recovery Craddock Murray Neumann Lawyers Each lot owner in a strata plan is required to pay levies (usually due quarterly) which make up the administrative fund and sinking fund of the strata scheme. Tax Time Record Keeping With the end of the financial year, now is the time for many people to start afresh and get their businesses in order. As part of completing an end of year return, it is timely to consider your record keeping obligations under Australia's tax laws. The Australian Chamber of Commerce and Industry identifies hidden business costs in proposed Parental Leave Scheme Craddock Murray Neumann Lawyers The Australian Chamber of Commerce and Industry ("the ACCI") has told the Productivity Commission that it needs to revise the proposed paid parental leave scheme to take direct costs off employers and small business. The modern approach to contract interpretation Khaled Metlej Jireh International Pty Ltd v Western Export Services [2011] NSWCA 137. The requirements for creating a valid e-commerce contract In recent years, online shopping has exploded in popularity, with many Australians taking advantage of the strong local dollar and the ease of making purchases online. As a result of consumers doing more shopping on the internet, small businesses may have begun to consider the viability of establishing an e-commerce presence. And as new technologies change the way people purchase products, it is essential that the law adapts to the changing environment by enacting legislation that both encourages businesses to adopt an e-commerce strategy, whilst still protecting consumers. As a result, a uniform legislative regime operates across all Australian states and territories, which applies to both electronic and face-to-face commercial transactions, equally. Things to be aware of regarding food labelling laws The interest in all things food related has taken off in the past few years and many people may wish to venture out on their own and start some food related business of their own. Some will take the restaurant route while others who are adept at making a particular product, may find themselves mass producing something that may wind up being sold in a major supermarket chain. That’s when things get interesting because all of the sudden, the product will need to have a label, not to mention whether or not it will have a ‘best before’ or a ‘use by’ date. The body, Food Standards Australia New Zealand (FSANZ) have Codes in place that states that labels must be accurate and not misleading. Unions strike out against unfair dismissal laws Craddock Murray Neumann Lawyers Unions have struck out against the revised unfair dismissal laws announced by Workplace Relations Minister, Julia Gillard, under the new Forward with Fairness laws taking effect next July. What Rights and Remedies are Available if there has been a Breach of a Business Contract? One of the issues that some small business owners may face is the reality that contractual disputes may arise either between a supplier, customer or another party with whom you share a contractual relationship with through your various business dealings. What to look out for if you want to start a business from home Many people dream of leaving their day jobs to start their own business at home because what’s not to love? You get to set your own work plan, manage your hours and avoid the morning traffic! When is the Price Right: Predatory Pricing and Small Businesses Predatory pricing is unlawful under s 46(1) of the Trade Practices Act 1974. This prohibits businesses that have substantial market power from using that power to eliminate or damage a competitor. It also prohibits preventing a person from entering a market, or deterring or preventing a person from engaging in competitive conduct in a market. Why business owners must supply goods of acceptable quality and fit for a disclosed purpose Small businesses should be aware, that with the introduction of the Australian Consumer Law (the ACL) affords the public a broader range of protections, as well as requiring both corporations and “persons” to provide goods and services which are of a requisite standard. The ACL has replaced the Trade Practices Act 1974 (the TPA), and although the new Act mirrors many of the provisions under the TPA, the ACL has also included implied conditions of quality and fitness in relation to consumer transactions and now enjoy statutory guarantees under the ACL. Why Choose Bankruptcy? Craddock Murray Neumann Lawyers A brief list of advantages and disadvantages for both Debtors and Creditors. Working with Contracts For most small businesses, contracts are part of everyday life. Whether selling goods, purchasing materials, employing staff, negotiating and signing on arrangements with customers, clients and providers, it is important to understand contracts and their implications for establishing best practice and solid business agreements. It is imperative to become familiar with the essentials of contracts, and to consult your solicitor before signing anything. You do not have to be rude or violent to collect a debt People often think of debt collectors as professional bullies or “stand-over” men who break debtor’s arms to make them pay. Whilst these methods might occasionally be effective, they are usually highly illegal, and no self-respecting business would ever want to be associated with these sorts of tactics. Business & Commercial Law Tweet		Search Book An Appointment Make an Enquiry A member of our legal team will contact you as soon as possible * * * Brief description of enquiry: Type the characters below: * Refresh Image

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