Legal Considerations for Starting a Business in NSW

Starting a business in New South Wales is an exciting venture, but it requires careful attention to legal considerations to ensure regulatory compliance. Whether launching a small business or a larger enterprise, understanding the essential legal requirements can help you avoid costly mistakes. Our experienced business and commercial lawyers at Szabo & Associates Solicitors can guide you through the complexities and ensure your business is set up for success.

Choosing the Right Business Structure

One of the first legal decisions you will need to make is determining the structure of your business. Common business structures include: 

• Sole trader: A simple structure where you operate as an individual

• Partnership: A business owned by two or more people

• Company: A separate legal entity with rights and responsibilities

• Trust: A legal arrangement where property is held for others’ benefit

Your chosen structure will significantly affect your taxes, liability, and administrative responsibilities, so seeking professional advice from Szabo & Associates is essential to choosing the best option for your goals and circumstances.

Registering Your Business

Before legally operating your business, you must register a business name. This ensures that your business name is unique and legally protected. You can register a business name online through the Australian Business Register (ABR). It is crucial to ensure that your business name is available and not already in use by another entity. You can check availability through the ASIC website.

Australian Business Number (ABN)

An ABN is a unique number that identifies your business to government agencies. You will need an ABN to: 

• Register for goods and services tax (GST)
• File tax returns
• Open a business bank account
• Claim tax deductions

Tax Obligations

Taxation is a significant legal aspect of any business. As a business owner, you will need to understand your tax obligations, including: 

• Income tax: Your business will be subject to income tax based on its structure.

• GST: If registered for GST, you will need to charge and collect GST on your sales and lodge regular Business Activity Statements (BAS) 

• Payroll tax: If your business employs staff and your total wages exceed the threshold, you may be liable for payroll tax.

Licencing and Permits

Depending on your industry, you may need specific licences or permits to operate legally. Common licences and permits include:

• Liquor licence
• Food licence
• Building licence
• Professional license

Employment Laws

If you plan to hire employees, you must comply with various employment laws, including:

• Fair Work Act 2009
• Workplace Health and Safety Act 2011
• Anti-Discrimination Act 1977

These laws govern minimum wages, working hours, leave entitlements, and workplace safety. Failure to adhere to them can result in penalties or legal disputes.

Intellectual Property Protection

If your business involves unique ideas, designs, or trademarks, you may want to consider protecting your intellectual property. You can do this through: 

• Trademark registration
• Copyright protection
• Patent registration

Contracts and Agreements

Drafting clear and enforceable contracts is crucial for protecting your business interests. This includes: 

• Lease agreements
• Supplier agreements
• Employment contracts
• Customer contracts

Having our experienced lawyers review or draft your legal documents helps prevent misunderstandings and protects your business interests.

Seek Legal Advice from Szabo & Associates Solicitors

Starting a business in NSW involves many legal steps, but taking the time to understand and meet these legal requirements can set you up for long-term success. Consulting with our business and commercial lawyers provides invaluable guidance, ensuring that you fully comply with relevant laws and regulations. For help navigating the challenges of entrepreneurship in NSW, contact us today.