Selling online - registration?

Sashasss · 26-10-09

Good day, All!

I've read several topics here about online businesses but still don't understand what should you do to keep it legally... From one hand people say that you can sell on ebay without registering a business... from other hand what is the difference then if I'll make mu own webpage to sell things? Practically it is all the same.

About my situation. I'm going to make a small home-based record label. Practically, I'll just make home-made CDs by artists on a base of some "contract" with them. Just something like "I let this guy make and sell by copyrighted music". I want to sell CDs online through my own webpage. Will there be any difference if I'll sell them through ebay or something like this?

So, all in all, what arrangements with government are needed?
Somewhere on official webpage I read that there is no need in registering business name for online businesses... So, what then?

David.Pagotto · 26-10-09

Hello Sashasss,

You are right, selling through a website and on ebay is basically the same but there are a few things you will need to know.

1. Income Tax needs to be declared on all income you may receive.
2. You must be registered for GST (and have an abn as a sole trader or other entity) if your business turns over more than $75,000 in a financial year.
3. To register a .com.au domain name you must have an ABN

Any business tuning over less than $75,000 is not required to register as a sole trader or other entity and have an ABN, so to get started you do not need to do very much.

You should however register a business name.

If you have anymore questions please do not hesitate to ask.

Sashasss · 26-10-09

Thank you, David!
You know, too many distractions in the internet, too few reliable informative places((
All the best,
Sasha

David.Pagotto · 26-10-09

No problems Sasha,

Feel free to also ask any other question you may have.

Sashasss · 27-10-09

Hmm... On the application form for a business name there is a note that online businesses are not required to register a business name... So, there is no need doing it.

How actually to declare an income properly? If I have only my home notes on what I've spent and what I've received... Yes, I will have a sum of income at the end of the year, but should I show some physical proof for all this stuff?

David.Pagotto · 27-10-09

Hello Sasha,
You do not have to register a business name for an online business but I would strongly advise it. Once registered no one else can register such a name, it is a bit of a safeguard and at the same time it is quite cheap.

As for income tax you will need to keep good records of everything you buy and sell. Get yourself a copy of MYOB business basics, it is very easy to use. Also it would be a good idea to talk to an accountant and fire all your questions at them. You would need the help of an accountant at the end of each financial year to fulfill your taxation requirements. So try to find one that you will stick to.

Regards Dave

jenifer1 · 10-01-12

Selling Online is a great idea, i have another one idea for Online Business.Success of a business is depend upon it's financial status.If the financial status of a business is good then the growth of the company is better.
In a small scale company financial status play most important role.To mange your account you can hire a Bookkeeper.Now days a lot of organization that is offering Online Bookkeeping Services.So you can try for Online Bookkeeping Service.