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Rank: Advanced Member  Joined: 11/9/2008 Posts: 53 Location: Seville Grove, Perth
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Hi all! Hope everyone is going well. I was wondering if anyone could explain to me in simple terms what I would need to do to get started in my own small party plan business. I wanted to buy from a wholesaler, I have contacted one and they sent me their terms (about minumun amounts etc) but I want to know what I need to do before. Do I need to do the whole tax thing? I doubt it would earn me alot of money to start out with...You never know though.... I just need some guidence. 
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Rank: Part of the Furniture!  Joined: 11/22/2008 Posts: 657
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Some basic things I can think of you would need to do are:
Get a Business Name
ABN & Register your business
Business Cards to hand out - Vista Print are cheap
I have been a party where the lady brought wholesale and jewellery and basically we brought on the night with cash, it was quite easy and simple. She had a simple display, gave a little talk about it all and we had a look and brought what we liked.
Tax - you don't have to register for GST under $75K I think it is, so if you don't you won't charge it, but you also can't claim it back.
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Rank: Advanced Member Joined: 11/9/2008 Posts: 53 Location: Seville Grove, Perth
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Thanks that sounds pretty easy 
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Rank: Bit of an Addict  Joined: 1/19/2008 Posts: 220 Location: Melbourne
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One common misconception about tax and business is if you earn under $75K then you don't have to pay tax. It's actually a turnover of $75K and that's only for GST, as Jemma mentioned.
If you're a sole trader (which most small businesses starting out are) you'll be counting every dollar that you earn as personal income, which adds onto any other income in your personal tax return. Take your business expenses off, and that's you're taxable income, but there's no threshold for when you don't have to pay tax on business earnings.
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Rank: Member  Joined: 6/10/2009 Posts: 10 Location: Qld, Australia
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Some good advice there. I would also suggest finding a really good accountant, preferably one who has experience in party plan businesses.
Mistakes are easy to make if doing your own accounting, especially if this is your first venture into business, so having an expert to do it for you could save a lot of headaches down the track.
Good luck with it all Peppa. It can be a hard road, but also a worthwhile one.
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Rank: Advanced Member Joined: 11/9/2008 Posts: 53 Location: Seville Grove, Perth
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Yeah I have been thinking about an accountant, I shudder at the word though.  I know I probably will need one though. THanks
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Rank: Administration  Joined: 12/16/2007 Posts: 2,569 Location: Sunny Perth
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I'm the first person to advocate an accountant - they're invaluable. However, I'll have to check the threshold -but income under a certain amount isn't declarable, as it's classed as a hobby. It's up to you what direction you decide to take the business in - if it's just something for a little bit of cash on the side, then I'd say keeping at hobby status is a good way to go. If you actually want to create an enterprise, move up the PP chain - then definitely speak with an accountant first, and with the company team leaders, to get together a strategy on how you're going to do that.
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Rank: Advanced Member Joined: 11/9/2008 Posts: 53 Location: Seville Grove, Perth
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Well I honestly would just like it as a hobby, just selling things 'on the side'...However I think with the market at the moment, Im not sure if would stay as small as I would like it. Could I just start it as a hobby then if things pick up later, get an accountant?
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Rank: Part of the Furniture! Joined: 11/22/2008 Posts: 657
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We started as a hobby then progressed, although we saw an accountant straight away to make sure we were doing everything right, which happened pretty much when it become other people buying stuff not friends anymore.
Even if you start as a hobby it is still a good idea to see one to find out exactly where you stand and what you need to do. It will probably be pretty straight forward but at least you can be comfortable knowing you got the right advice, I have seen so much varying in regards to hobbies and tax, I know I get so confused.
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