Starting your small business can be many things: exciting, overwhelming, frustrating, and, well, confusing. A good portion of this confusion comes in the form of the enormous variety of terms that you will find being thrown at you. The more that you familiarise yourself with these common tax and business terms, the easier it will be to navigate the process of getting your small business off the ground. Here are 6 helpful acronyms and terms to know before you begin:
ABN - Australian Business Number
An ABN or Australian Business Number may be the single most important number that you obtain for your small business. An ABN will allow you to distinguish your business, and it also allows for access to multiple benefits, including claiming tax credits for GST and energy grants, avoiding PAYG tax on payments that you receive, and the ability to register an Australian domain name for your business website.
ABR - Australian Business Register
Once your ABN application is processed and accepted, your company will be added to the Australian Business Register (ABR). The ABR contains the information for your business, both the public information that is available to anyone, such as your business name, and private information that is not available to the wider public, such as your authorised contacts.
ACN - Australian Company Number
If you have decided to set up your business as a company instead of as a sole trader or other structure, then you’ll need an ACN, an Australian Company Number. The ACN will allow you to apply for an ABN as a company. If you’re a company, you must either have an ACN when you apply for your ABN or you can apply for both at once. Your ACN will also appear on the ABR.
AFS Licence - Australian Financial Services Licence
If your business will be providing financial services, then you will need an AFS Licence. An AFS Licence will authorize you to provide financial services and deal in financial products for clients. This can cover anything from deposit accounts to securities to superannuation.
TFN - Tax File Number
A Tax File Number (TFN) is essential for any business. If your business is that of a sole trader, you will be able to use your individual TFN for your business. If your business is one other than a sole trader, then you will need to apply for a separate TFN for the business.
BRS - Business Registration Service
The Business Registration Service is where you can find information about the various registrations that you may need for your business. It also combines a number of them, allowing you to register for more than one at a time.
Ready to Get Started? Call TCA Darwin Today
Don’t let the confusion of starting a new business keep you from opening one at all. Give the accounting experts at TCA Darwin a call today or schedule an appointment online. We can even help you figure out if you qualify for certain grant funding initiatives.