NSW Sole Trader - Any Legal Issues in an IT Support Business?

[Verpz]

Hi,

I'm thinking about becoming a sole trader. I will be fixing people's computers or solving problems related to technology. I understand that I need public liability insurance in case I break something but what else do I need? If a client needs a physical part replaced, if I provide it, what issues arise with warranty etc if they buy it off me.

Do I have to charge GST? I would hopefully be buying the parts from a wholesaler. If an item is faulty that I provide what do I do? (I have a small budget to start this business).

Thanks.

 

[Lance]

Hi,

I was an electronics service technician for 20 years, but I never worked as a sole trader in that field. I guess your public liability needs to cover liability from exposures at the home / shop. You need to consider liabilities from parts as you said and more generally if your repairs lead to equipment damage or worse a fire.

While you would have grounds to pursue an action against a supplier for faulty parts, you would too carry an exposure. That said there are small business insurances that cover this. Your billing should identify GST.

 

[isoconsultingservices]

Every IT company has its legal issues at some point. So may be there are some chances to charge GST. Every IT company has their own consultant to determine all these things which you can clearly understand.

 

[Scruff]

You clearly don't have the knowledge yet to start your own business, so you shouldn't try.

Save yourself a lot of headaches and attend a small business course first. That will cover everything that you have asked about.