Running a website question

[Liquid]

Is running a website in my case a social networking website classified as a company / business if i am not charging anyone for anything .?

Do i need a ACN i have a ABN would this apply to the site

its on a .com domain extention.

i dont want to go into any of the details or what the site is as its still under development.

Cheers

 

[johno69]

No ACN required.

 

[nt81]

.com = no ABN required

 

[Horshack]

Go and see an accountant. My understanding is that if you want to claim GST on your expenses you need an ABN regardless of the domain extension. Again my understanding is that your expected income from the site or connected sites will determine whether it is better to incorporate or not. I must state that I'm not an accountant and this is not financial advice. It's better to see an accountant rather than get answers from a forum like this.

 

[nt81]

Registering for GST isn't required unless you turn more than $50k per year.

On top of that, there is a grace period where your new business is considered a hobby and therefore not declarable. Check with a tax person, as this was definitely the case a while back. I'm not sure if it still stands.

From every accountant I've ever spoken to, it is a waste of time (and money because you pay more tax) to register for GST UNLESS you're clearing more than $75k of income per yer from your business.

Go see an accountant though, because I'm not one and the legislation may have changed since it was relevant for me.

ABNs however are different. ABN rego is free and a good way to register a small business and write off a bit of tax.

 

[Liquid]

Thanks for the information guys really helpful

 

[nt81]

You're welcome.

If you're like me and you have a small business running on the side, not quite worthy of GST/BAS , you can simply do your MYOB accounting for the business and lodge it with your yearly tax return.

Obviously if you're wanting to claim GST credits from your purchases, it means you need to register for GST and do quarterly BAS's

Means you don't need to worry about a BAS every

 

[James]

You need to pay GST if you make more than $75,000 a year on your business offline or online. I think they were going to change it to make it even higher.

Information here - https://www.ato.gov.au/Business/GST/When-to-charge-GST-(and-when-not-to)/

But yes GST is kind of annoying and just another thing to collect that makes the price seem higher to end users. But that been said people can claim back the GST spent on big purchases for your company.

Talk to a qualified accountant who knows online is my advice, I am pretty sure if you deal with US based companies/ B2C you are not aloud to change GST on the price, it is for Australian based customers/ business only.

 

[findtim]

all good advice above, so i will just add to it.

stay AWAY from GST as long as you can

you only need to enter into GST once you THINK you will exceed $75k p/a, so that could actually occur in april or may so you only charge/pay GST for those months, and thats not "clearing" thats GROSS.

( check with an accountant but always remember forever accountants are unaccountantable !!! )

if you have a website and no income is coming from it AS YOU are not wanting any income, eg an information site, then just do nothing with tax, have it registered to you with a close reason to do so and do whatever you want.

don't even try to claim the $20 renewal fee IMO.

stay under the radar

tim

 

[helloworld]

Is running a website in my case a social networking website classified as a company / business if i am not charging anyone for anything .?



Do i need a ACN i have a ABN would this apply to the site



its on a .com domain extention.



i dont want to go into any of the details or what the site is as its still under development.



Cheers

You've described a hobby.

 

[findtim]

You've described a hobby.

yes, because thats basically what he will be doing, isn't a hobby something you spend time and money on with no chance of a return.


story:
---------
i went into a house selling whilst selling foxtel and the lady had @ 100 elephant figurines, i said " ohh you collect elephants" she said NO, someone gave me one once and another person thought i liked them and gave me another, that was 20 years ago and no all i get given is bloddy elephant.

tim

 

[helloworld]

yes, because thats basically what he will be doing, isn't a hobby something you spend time and money on with no chance of a return.


story:
---------
i went into a house selling whilst selling foxtel and the lady had @ 100 elephant figurines, i said " ohh you collect elephants" she said NO, someone gave me one once and another person thought i liked them and gave me another, that was 20 years ago and no all i get given is bloddy elephant.

tim

Nope. A hobby can still earn an income.