In this week’s episode of MSSTV, we talk about the wearing the legal hat for your business. You can watch the video over at MSSTV Episode 14.
You need not be an expert in all legal aspects of your business but you need to be aware with laws governing your finance division, HR division, and so on and so forth so you can seek help before a problem arises..
What legal considerations would there be in a Music School?
- What business structure will suit your tax needs, your staff needs, and will protect your assets & IP? Choose from creating sole proprietorship, partnership, corporation, or trust.
- You need to register a business name and then open a business bank account.
- Registering your business name in your state (if in Australia) protects you from anyone else using it.
- You will need to pay a minimal annual fee for this.
- Separate registration is required per state.
- It is NOT as strong a protection as a Trademark so other people’s business names can be quite similar.
- You will also need to register and protect your logos, names, and graphics.
- You can do this by registering trademarks nationally or internationally.
- Copyright on the one hand is more suited for unique sheet or audio music, documents, etc.
- Your accountant needs to register your ABN & GST
- If your income reaches $75,000 and more, you will need to be GST registered.
- GST registration allows you to claim GST costs as well as collect it.
- You also need to consider your local rules.
- Contact your local council to learn if there are restrictions for noise, parking, & signage.
- Consider getting an insurance broker for public liability, professional indemnity, business interruption, instruments, contents, etc.
- Work with your HR to setup a Super fund.
- Define your lesson policies – what will work for you, your staff, and your students.
- Define your staff contracts including holidays, pays, illness, resignations, tasks, etc.
- Review your leases.
Even when small, be aware, prepare your legal systems to enable you to grow easily. If you feel the need for assistance particularly in this subject matter, let me personally mentor you in my coaching sessions so that you avoid the trial and error cycle that usually occurs in startup music teaching businesses or if you do feel you want to grow your business at a higher success rate.
Start by booking a FREE session with Wendy to discuss your specific goals and needs.
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