Starting a business in regional NSW or Victoria

Registering a business in Australia is quick. Setting it up so it does not cause you problems in year two takes a bit longer. This is the order to do it in, and the state differences that matter if you are anywhere near the Murray.

1. Pick the structure before you register anything

Sole trader is the fastest and cheapest. You trade under your own name or a registered business name, you are personally liable, and the business income goes on your personal tax return.

A company is a separate legal entity registered with ASIC. It costs more to set up and carries an annual review fee, and it brings director duties and a director identification number requirement. It limits some liability, though not the liability that a director personally guarantees, and not liability for your own negligent work.

Partnerships and trusts have their place, particularly on farms and in family businesses. Talk to an accountant before you choose. Changing structure later means new registrations, new bank accounts and sometimes new licences, so the hour with the accountant is cheap.

2. ABN, business name and GST

Apply for an Australian Business Number through the Australian Business Register. It is free. Anyone who charges you for a plain ABN application is charging for typing.

If you trade under anything other than your own legal name, register a business name with ASIC. There is a fee, payable for one year or three years, and ASIC publishes the current amount. Registering a business name does not give you trademark rights and does not stop someone else using a similar name, so check the trade marks register too if the name matters to you.

Register for GST once your turnover reaches the registration threshold, which has sat at $75,000 for some years. Confirm the current figure with the ATO. Some businesses register earlier by choice, which lets them claim GST credits on setup costs and looks more established to commercial customers.

While you are there, sort out PAYG withholding if you will have staff, and get a business bank account. Running business money through a personal account is the single most common reason a small business has an unpleasant first tax return.

3. Licences and permits

This is where the state you operate in starts to matter.

Trade licences sit with NSW Fair Trading in New South Wales. In Victoria, builders and plumbers sit with the Victorian Building Authority and electrical work sits with Energy Safe Victoria. If you will work on both sides of the border, read how a NSW licence works in Victoria before you quote your first job over there, because entitlement follows the location of the work.

Food businesses register with the local council under state food law, and usually need a food safety program and a nominated food safety supervisor. Liquor is licensed by Liquor and Gaming NSW or by the Victorian liquor regulator. Mobile food vans need approval in every council area they trade in, which in border towns can mean two councils in two states.

The Australian Business Licence and Information Service is the tool for working out what applies to your activity in your location. It is free and it is more reliable than asking around.

4. Insurance

Public liability is the baseline. Twenty million dollars of cover is commonly required by councils, government contracts and larger commercial clients, and ten million is often the minimum anyone will accept. Get the certificate of currency and keep it where you can send it in a hurry, because clients ask for it at the worst possible time.

Beyond that, consider professional indemnity if you give advice or design, tools and plant cover, business vehicle cover that reflects commercial use, product liability if you sell goods, and business interruption.

Workers compensation is compulsory once you employ people. In New South Wales it runs through the icare scheme, and in Victoria through WorkSafe Victoria. The policy generally follows the state where the worker is based, so a business with staff on both sides of the border needs to get advice rather than guess. Sole traders and most working directors cannot cover themselves under workers compensation, which is why personal accident and income protection cover exists.

5. Tax and payroll obligations that differ

Income tax and GST are federal and identical in both states. Payroll tax is a state tax with different thresholds and different rates in New South Wales and Victoria, and both states adjust them. If you are approaching either threshold, check Revenue NSW and the State Revenue Office Victoria, and remember that wages can be grouped across related entities.

Land tax, stamp duty on commercial premises and vehicle registration are all state based too. On the border it is genuinely worth checking both, because the cost of the same decision can differ.

6. Getting found in a small market

In a town of 8,000 people, word of mouth is the strongest channel you have, and being findable is what turns word of mouth into a phone call. Someone hears your name at the footy, then searches it that night. If nothing sensible comes up, the recommendation dies there.

What actually works in regional markets:

• Consistent details everywhere. The same business name, address and phone number on your website, your Google Business Profile, your directory listings and your invoices. Inconsistency is what makes search engines unsure you exist.
• A real service area. Say which towns you cover. A Wodonga electrician who works Albury, Baranduda and Yackandandah should say so, because that is what people search.
• Your licence number in public. It is the fastest trust signal in the trades and most competitors leave it off. Every trade listing on this site displays the number and the date it was last checked, and buyers can verify it with the licence check tool.
• Real hours, kept current. Being listed as open when you are shut costs you the next three calls as well.
• Reviews asked for at the right moment. Ask when the job is finished and the customer is happy, not a month later by email.

A directory listing does two jobs. It gets you in front of someone searching for the service in your town, and it backs up your own website with a consistent, independent record of who you are.

List your business on the category and town pages people actually use, such as Albury or Wodonga, and check where your trade sits in the category index before you write your listing description.