Notes of Reading "Tax For the Very Small Business"

ritaclin

"Tax For the Very Small Business"( A book by Susan Young & Kate Robinson)

How do we identify business?
-Activities carried out for commercial reasons and in a commercially viable manner;
-You are acctually doing it rather than thinking of doing it;
-You can make a profit from your biz activities;
-The kind of business and the way you run it are consistent with the norms in the industry, with repeated regular activities as part of the business;
-the business is planned, organized and run in an organnized and biz-like manner;
-You are contracted by clients to produce a result, and can provide necessary tools and quipments to do this
-Less than 80% of the income from your personal services is from one client and you have two or more clients, an apprentice for at least half the year or someone perform work that generates 20%+ of your revenue, exclusive use of premises that are physically seperated from your home or your clients' premises.

ritaclin

the four main types of business you can set up are:
-sole trader
-company
-trust
-partnership

ritaclin

Being a sole trader you do not have to choose to apply for an ABN, but if your annual turnover is over $50,000, you are required to register for GST and get an ABN.
...
to be continued
that's all for today; I'm sleepy now, gn~