Legal_Requirements_to_Set_Up_a_Florist

SBM401A- BUSINESS AND LEGAL REQUIREMENTS THE LEGAL FORM OF OWNERSHIP OF FLORIST After reviewing your proposal to set up a florist, as your consultant I would advise you to carefully read through my recommendations. It is advisable to set this Florist as a private company, as this is the best protection from liability for you, as the owner. A private company is a more complex business structure formed by one or more people who wish to have a business that is a separate legal entity to themselves. To set up a Company, you must register under the Corporations Act 2001. This allows you to conduct business throughout Australia without needing to register in individual State and Territory jurisdictions. Hence, Companies are regulated under the Corporations Law. A Company name must also be chosen. This name must indicate the company’s legal status. A proprietary company must include PTY in its name, and if liability is limited, Company name must end with LTD. The name chosen can not already be registered. This can be checked on the National Name Index As the florist will be a proprietary company with a single shareholder, who is also the sole director, there is no need for set rules governing its internal management. Only needs rules to allow the Company to conduct business. Before a Company can be registered, you must get approval from whoever will be filling the role of director, secretary and Company member. A Company must send in an Annual Company Statement once a year, and must lodge an annual Company Tax Return to report its income and deductions. Thus, the tax reporting requirements are far greater than for a sole trader or partnership. But have to bear in mind that a Company is taxed at a lower concessional rate of 30%. There are also establishment fees and ongoing administrative costs and compliance expenses associated in being a company. However, this is a small price to pay for protecting the business owner (yourself) from potentially devastating liability. That is, as the business owner, your personal assets are not at risk in the event of litigation. Notes: www.asic.gov.au www.business.gov.au www.dynamicbusiness.com