Starting a business: Determining if you are actually in business
Determining if you are in business
Before deciding the type of entity you want to establish for your business, for example operate as a sole trader or form a company, you need to determine whether you are in business.
Generally you are in business when you
- start charging others for the goods/services you provide
- supply goods/services on a regular basis
- intend to make a profit from doing so.
To decide whether you are in business we look at
- the nature of your activity
- how much time, money, and effort you put into the activity
- how long you have been doing the activity and your future plans for the activity
- how much you make from the activity
- whether you run your activity in a similar way to most businesses in the same trade
- if you intend to make a profit.
If you are still unsure about whether your activity qualifies as a business, please contact us to discuss your situation.
Date published: 14 Jan 2005
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