IDENTIFYING GENUINE BUSINESSES

Sometimes getting a bargain can cost you more in the long run. With the expansion of internet services such as airtasker, facebook and so on it's easier to start a backyard business. For peace of mind you should ask the following questions.

QUESTIONS YOU SHOULD ASK

Do you have an ABN?

Whilst it is not a legal requirement to have an ABN it is considered good practice to have one. You do need an ABN to register a business.

Is the business registered?

A sole trader can trade under his or her personal name. If it is not a personal name eg: such and such company. Then by law it has to be registered. You cannot get public liability insurance without a ABN or registered business name. Which leads to the next question.

Are you insured?

You should always ask to see a certificate of currency.

A certificate of currency is a document confirming that your insurance policy is current, policy type and expiry date.

Merely having an ABN and a registered business does not automatically mean the business is insured, but you need both to get insurance.

You can search for a ABN or ACN at abr.business.gov.au

Search for registered business at asic.gov.au

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