How To Start a Business Part 1

Making money can be hard, but it doesn’t have to be, it all lays in what you do. Starting a business is a very easy thing to do, everything lies within your own mind; if you’re not willing to put in the effort you won’t receive the reward. On this website, I’ll be breaking down what you can do to start your business and how to run it with very simple formulas that anyone can follow.

Sole Proprietorship

A sole proprietorship is the most popular type of company in the world making up 90% of all business. This is due to the fact that it has few legal formalities. It’s also very quick to set up as all you have to is register the name and get yourself an ABN. As a result, you’re the sole owner on this business and any income that the business receives, is counted as the owner’s income and have the same tax law as anyone working for a company. The negative of sole a  business is that it can only run as long as the owner lives and is limed by the skills of the owner(s). These types of business are often small rental shops and farms.

Partnership

A partnership is just as it sounds, teaming up with a mate and making a deal. In most cases the business will be split 50% each, this gives the business a wider range of skills and more resources. Traditionally partnership are not incorporated meaning they fall under the same business structure and has unlimited liability, so each partner is liable for all the debts of the business. In most cases, partnerships are taxed the same as a sole partnership and don’t fall under the same tax brackets.

Company

A company or corporation is a separate legal entity formed under the Corporation Act of 2001. Those that are a part of the ownership of the company are called shareholders and the percentage of the company that is held is determined by the number of shares they hold. The unique thing about a company is that the shareholders are only liable for the debts of the business to the extent of their initial investment or the price of their shares.

A company can be broken down into two different categories: public and private. I’ll go into more detail about the two in my next post. For now, all you need to know is that a public company is something that anyone can buy into – a share or a part in the company – such as Apple or Amazon, an example of a private company is Space X, where shares are not open to buy and sell to the public. They are only owned by the investor at the start the person who started the business.

If you wish you start a business follow these days under (How to start a business) at Investoncon.com

 

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