Small Business Advice & Tips
- Self Employed. A person who is self-employed is defined as someone who “works for oneself as a freelance or the owner of a business rather than for an employer”. This can be either as a sole trader business type, where you are the exclusive owner of the business and are solely responsible for the business, or in a partnership where you share joint ownership with another individual(s). Being self-employed means that you are entitled to a direct share of profits that your business earns and you are in control of business activities, but also makes your directly liable for the business and any losses you may incur.
- Small Business. A small business is one that operates under any business structure eg sole trader, partnership, trust or company which has an annual revenue turnover of less than $2million. Under small business classifications, your business may be entitled to certain concessions from the tax office such as the immediate asset write off concession, to help your business grow and avoid tax liabilities during the year.
- Medium Business. A medium sized business is one that has an annual turnover exceeding the small business restriction of $2million. Each year a small business is required to evaluate whether they meet the classification of a small business entity, and if this is not the case they are now classified as a medium business which removes the current tax concessions they receive from been classified as a small business.
- Large Business. A large business is defined as one that exceeds $250million in annual turnover of income. Large business are not eligible for any of the small business tax concessions, and need to be properly managed to reduce tax liabilities throughout the year.