Starting a Business in Australia

Choosing Your Business Structure

The first decision is choosing how to structure your business. Each has different legal and tax implications.

Sole Trader:

• You are the business
• Simple to set up (just register a business name)
• You’re personally liable for debts
• Simplest tax treatment

Partnership:

• Two or more people running a business
• Partners are jointly liable for debts
• Requires partnership agreement
• More complex tax treatment

Company:

• Separate legal entity from owners
• Limited liability (company is responsible, not you personally)
• Requires registration and compliance
• More expensive to set up

Trust:

• Used for asset protection and tax planning
• Complex structure
• Requires trust deed
• Good for family businesses

Registration Requirements

All businesses must:

• Register a business name (or use your own name)
• Get an ABN (Australian Business Number)
• Register for tax (ATO)
• Register for GST if turnover exceeds $75,000

Some businesses also need:

• Professional licenses (tradedie, accountant, real estate)
• Workplace insurance (if you have employees)
• Industry-specific registrations

Legal Requirements

• Create business contracts for clients/suppliers
• Understand employment law (if hiring)
• Follow privacy law
• Keep business records for 5 years
• Pay tax on time

When to Get Professional Help

Before starting, consult:

• An accountant (structure, tax)
• A lawyer (contracts, liability)
• Your industry regulator (if applicable)