In this guide, we’ll walk you through the essential steps to officially set up your business, meet legal requirements, and get started on the right track.
Step 1: Decide on Your Business Structure
The first decision you’ll make is choosing a business structure. Each option has different responsibilities, legal implications, and tax requirements:
- Sole Trader – The simplest and most common structure, perfect if you’re working on your own.
- Partnership – Ideal for two or more people running a business together.
- Company – A separate legal entity with more compliance, but often better for growth and liability protection.
- Trust – A more complex option often used for asset protection or managing investments.
💡 Tip: Visit the Australian Taxation Office (ATO) for detailed information about each structure before making your choice.
Step 2: Apply for an ABN (Australian Business Number)
Your ABN is essential for invoicing, tax, and business transactions. Without one, your customer is obligated to withhold 45% of your invoice and give it to the Australian Tax Office. Don’t worry, this money isn’t lost. This works as a tax credit towards your income tax. Without one, you won’t be able to register a business name.
- Apply online for free via the Australian Government Business Registration Service.
- Keep your ABN handy. It’s like your business’s ID number.
Step 3: Register Your Business Name
If you plan to trade under a name other than your personal name, you’ll need to register a business name.
You can:
- Register through ASIC’s Business Name Registration portal, or
- Register it at the same time as your ABN via the Business Registration Service.
✅ Pro Tip: Always check if your chosen business name is available before applying. This helps you avoid conflicts and trademark issues.
Step 4: Register for Taxes (If Applicable)
Depending on your business type and size, you may need to register for specific taxes:
- GST (Goods and Services Tax) – Required if your turnover is $75,000 or more. Or you can choose to register if it works in your favour.
- PAYG Withholding – Needed if you plan to hire employees.
- Other taxes – Such as FBT (Fringe Benefits Tax), LCT (Luxury Car Tax), or WET (Wine Equalisation Tax), depending on your industry.
You can register for these at the same time as your ABN, making the process quicker.
Step 5: Check Licences and Permits
Some businesses need extra approvals before operating. For example, cafes may need food handling permits, and builders may need specific licences.
Use the Australian Business Licence and Information Service (ABLIS) to check what applies to your business and location.
✅ Quick Registration Checklist
- Choose your business structure
- Apply for an ABN (compulsory)
- Register your business name
- Register for necessary taxes
- Check licences and permits
With these steps done, your business will be officially registered and ready to operate in Australia.
Helpful Resources for New Business Owners
If you’re just getting started, these resources are worth exploring:
- Guide to Starting a Business – business.gov.au
Covers everything from researching your idea to hiring staff and managing finances. Includes downloadable checklists to keep you organised. - ATO Business Guidance
Learn about tax obligations, deductions, and superannuation requirements. - Local Business Support Services
Many councils and chambers of commerce offer free mentoring, training, and networking opportunities.
Need Help Getting Started?
Starting a business is exciting, but it can also be confusing. If you’d like guidance with business registration, tax set-up, or just understanding what you really need to know, we’re here to help.
Contact us for a free consultation and let’s get your business set up the right way.
