1. Check the tax return requirements for your business type
Your business needs to lodge a tax return each year, even if you record a loss or don't meet the tax threshold. When lodging your return, make sure you know the rules that apply to your business structure:
- Sole trader - Lodge an individual tax return. Include all your business income on your tax return using a separate business schedule. You dont need to lodge a separate tax return for your business.
- Partnership Your partnership has its own tax file number (TFN) but doesn't pay income tax on the profit it earns. Each partner reports their share of the partnership income in their own tax return. Your partnership must also lodge a separate partnership return under its own TFN.
- Company A company is a separate legal entity. You must lodge a company tax return and pay tax on the companys income. If youre a director, youll still need to lodge your own personal return as well.
- Trust A trust has its own TFN and must lodge a trust income tax return.
If you run a not-for-profit (NFP) organisation, you may be eligible for tax concessions. Read a summary of tax concessions for NFP organisations on the Australian Taxation Office (ATO) website.