What is a sole contractor?
A sole contractor is someone who provides services and is considered to be self-employed or a sole trader. They will have an ABN (Australian Business Number) and can also be referred to as a subcontractor.
Some industries that involve contractual services can include construction, IT and creative industries (arts, media).
Considerations to being a sole contractor?
There are a few considerations involved:
- They will need to pay their own tax in most circumstances.
- Most contractors will make their own contributions to their super fund.
- They are in control of their own business insurance.
- When contract of work issues occur, they will need to be resolved between respective parties involved.
Becoming a sole contractor
To establish yourself as a sole contractor, the following areas should be thought and checked against:
- You will need an ABN and some even register a business name too.
- Do you fully understand your tax rights and liabilities.
- If certain laws apply to your industry you will partake in them, understand how they affect you.
- Protect your intellectual property (IP), your business is your identity.
- Make sure you have insurance.
- Seek professional advice if necessary before starting any business.
Running a business is a very involved process and time consuming. And being a sole contractor is no different but the benefits far out-way the work involved. The best part is you’re running your own business.
A great place to start to find out more information, is over at the business.vic.gov.au website.