Hi,
I want to register a .com.au domain for a blog I want to start. However, to comply with auDA rules I must have an ABN, ACN or Trademark. An ABN is the easiest to obtain so I will go with that option.
Are there any catches that I need to be aware of? (in regards to tax etc.)
Thanks in advance for your input.
Just make sure you don't voluntarily register for GST. I registered a business number a long time ago to take out some contract web design work and ticked the GST option without knowing exactly what it was for. About a year or so later, I finished the web design work and moved on to a full time job. The business account was left idle but little did I know that because I had registered for GST, I had to fill out a BAS statement every quarter. Since I moved out of home as well and didn't update my address all the letters which got sent to my parents for reminders also got left unnoticed. Just late last year, my parents received a letter for me, for a 2k fine for not filling out the BAS statement for the last 8 years. I called the ATO and explained to them very apologetically that my business was idle and I made no income nor any loss during those period and I really didn't know I needed to fill out any activity statements. They waived the fine completely which was a huge relief for me, but it is also a lesson well learnt.
If you just register for a free ABN and setup as a sole trader, you can claim your losses in your tax return to offset the tax you pay through your day time job.
Good luck with your blog.
I think under a certain amount you can report annually along with your tax return. IIRC it changed from quarterly several years ago. Also IIRC the disadvantage of not registering for GST is not being able to claim GST on inputs and also having to explain to customers that you are under the threshold so not charging GST.
having to explain to customers that you are under the threshold so not charging GST
I was a sole trader a few years back and this was a pain.
and didn't update my address all the letters which got sent to my parents for reminders also got left unnoticed.
Really for 8 years you left your mail unnoticed?
Is the blog around the 100s of competitions you post?
hahaha
Do you have to add any earnings from your business (like blog) to your salary from day job?
or do you have any separate limit on your biz earning which is tax free?
YOur post reads to me as if you're wanting to get an ABN solely for the purpose of being able to get a .com.au web address??? A few years ago the person who ran one of the forums I was on did just that. Within a couple of years he received a letter stating that as he wasn't running a business he wasn't eligible.
yer and dont get PAYG either, even tho I run a business I've never needed it but I still have to fill out the dam forms -.-
I am assuming you are applying an ABN as sole trader. Check this page which stated:
As of "enterprise", please the list on this page.
Once you have a "business" as a sole trader, you'll need to fill out the business section of your annual tax return.