Starting a new Babysitter marketplace business - what legal steps do I need to do?

Discussion in 'Business Accounting, Tax & Legal' started by FinnMcCool, 13th May, 2017.

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  1. FinnMcCool

    FinnMcCool Active Member

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    Hi everyone!

    I'm creating a new 'Babysitter marketplace' service. It's where babysitters can register a profile and parents can search for them and make bookings.

    I have been careful to ensure this is simply a marketplace, where my service only introduces two parties to conduct business, and not a babysitting agency (nor are the babysitter considered employees, wear uniforms, or anything like that - it's more like Uber). I do however make a very small commission (5%) on each booking.

    I have a separate bank account, separate email address, website however I re-used an old ABN I had in my own name (well, I actually tried to make a new one, but the government told me I already have one and should use that!).

    I can see exisiting babysitter services such as FindABabysitter.com.au that are operating and are very similar.

    What should be my next steps as far as protecting myself here? Obviously I'll have T&Cs and try and spell it out every at every opportunity that I cannot accept liability for the babysitters on the site, however I just want to make sure I've done everything I possibly can.

    I'm happy to sit down with a lawyer, but I don't want to be scared away of doing this due to liability given there are other websites out there doing the same thing just fine.


    FMc.
     
    FinnMcCool, 13th May, 2017
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    But are they?

    Just because someone else takes huge risks, doesn't mean that you should.

    I would never operate a business like this - where the risks are somewhat greater than zero - using my own name. At least get a basic Pty Ltd company structure in place. As the director, you'll still potentially be liable if stuff goes really wrong - but you get a lot more flexibility.
     
    Simon Hampel, 15th May, 2017
    #2
  3. FinnMcCool

    FinnMcCool Active Member

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    Yes, absolutely. I will be getting advice on this and a basic Pty Ltd company structure (or whatever is most appropriate) setup.

    I do have the option of re-purposing the app into a 'Find a Cleaner' application, which I'm starting to think exposes me to a lot less risk... (naturally a couple months re-work will be required :( )
     
    FinnMcCool, 15th May, 2017
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    Why stop there?

    How about other home services? Lawn mowers / gardening? Dog walkers? Pool cleaners?

    Of course, you're starting to compete with the likes of Airtasker there though.
     
    Simon Hampel, 15th May, 2017
    #4
  5. FinnMcCool

    FinnMcCool Active Member

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    Yes - that is the plan.
     
    FinnMcCool, 15th May, 2017
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Employment of minors is a minefield. A far higher duty of care and contractual problems
     
    Paul@PAS, 20th May, 2017
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Passing off may be the first issue. You indicated follow a competitor model on a public forum
     
    Paul@PAS, 20th May, 2017
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  8. FinnMcCool

    FinnMcCool Active Member

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    Hi Paul. I do not plan to hire minors, or any babysitters at all. My understanding is that they will not be employees, similar to Uber, Foodora, Deliveroo, etc.

    Sorry, I don't understand - passing off?
     
    FinnMcCool, 29th May, 2017
    #8
  9. FinnMcCool

    FinnMcCool Active Member

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    Can you point me in the right direction on this? I tried to register an ABN however it rejected me I already have one from some prior contracting I did in the past.

    Is this something I can do myself (with help from some forum posts) or a question for an Accountant, or Lawyer (or both)?
     
    FinnMcCool, 29th May, 2017
    #9
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Paul@PAS, 29th May, 2017
    #10
  11. FinnMcCool

    FinnMcCool Active Member

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    FinnMcCool, 29th May, 2017
    #11