Establishing a business in Australia is an exciting step that offers independence and opportunity. However, it also comes with legal, tax, and regulatory responsibilities that require careful planning. Whether you’re launching a sole proprietorship, starting a company, or operating as a trust, following the correct steps from the beginning will help your business grow without compliance issues or financial setbacks.
This guide walks you through the key requirements to get your business off the ground—legally and efficiently.
Step 1: Start With a Plan, Not Paperwork
Before registering your business, create a clear roadmap. Strong planning lays the groundwork for future success.
Business Plan
A written business plan should cover:
- Your product or service offering
- Target market and customer base
- Competitor analysis
- Operational strategy
- Financial projections and pricing
- Marketing channels
Not only is this helpful for your own clarity, but it also becomes essential if you’re applying for finance or investors.
Market Research
Understand your industry and competitors. Research helps you validate your idea and position your business effectively in the market. Look for:
- Market demand and gaps
- Pricing trends
- Regulatory conditions in your sector
Seek Professional Advice
New business owners benefit greatly from guidance. Speak with a business advisor or accountant early. Services like business.gov.au offer free tools and resources to get started. For specific financial or tax advice, engaging a firm like TTS & Associates can provide clarity from day one.
Step 2: Choose the Right Business Structure
Your business structure determines your legal responsibilities, tax obligations, and personal liability. The main structures in Australia are:
Sole Trader
- Easiest and cheapest to set up.
- Operate under your personal Tax File Number (TFN).
- Full control over decisions and profits.
- Personally liable for all debts and legal risks.
Partnership
- Two or more people/entities operate a business together.
- Requires a partnership agreement outlining roles and profit shares.
- Partners are jointly liable for debts.
Company (Pty Ltd)
- A company is a separate legal entity.
- Offers limited liability protection for owners (shareholders).
- Must be registered with ASIC and have its own TFN and ABN.
- Subject to additional reporting and a flat company tax rate.
Trust
- A trust involves a trustee managing assets on behalf of beneficiaries.
- Can offer asset protection and tax planning benefits.
- Complex to establish—requires a trust deed and usually a solicitor’s help.
Important: It’s not easy to change structures later. Make sure your structure suits your current goals and future plans. For tailored advice, speak with a qualified tax agent or advisor.
Step 3: Register Your Business
Once you’ve chosen a structure, you must register with the appropriate government agencies.
Apply for an ABN
An Australian Business Number (ABN) is an 11-digit identifier used in dealings with the ATO and other entities. You can apply online through the Australian Business Register.
Register a Business Name
If you’re trading under a name other than your personal name, register it with ASIC. Check for:
- Business name availability
- Conflicts with existing trademarks (search via IP Australia)
Tax File Number (TFN) & Other Tax Registrations
- Sole traders use their personal TFN.
- Companies and trusts receive a new TFN during registration.
- If you expect to earn more than $75,000 annually, register for Goods and Services Tax (GST).
- Register for PAYG withholding if you plan to employ staff or pay yourself as a director.
Many of these steps can be completed in one go using the Business Registration Service.
Step 4: Understand Your Ongoing Responsibilities
Running a business involves regular obligations to the ATO and other authorities. Staying compliant is not optional—it’s essential.
Maintain Accurate Records
The ATO requires you to:
- Track all income, expenses, and employee payments
- Keep invoices and receipts for 5 years
- Reconcile accounts regularly
Good record-keeping simplifies Business Activity Statements (BAS) and annual tax returns.
Lodge Tax Returns and BAS
- Sole traders report business income in their individual tax returns.
- Companies, partnerships, and trusts file separate annual returns.
- If you’re registered for GST, you must lodge BAS (usually quarterly) to report GST collected and claim GST credits.
Employing Staff? Understand Payroll Rules
- Register for PAYG withholding and Single Touch Payroll (STP) reporting.
- Pay superannuation contributions (11% in 2025) for eligible employees.
- Provide payslips and keep payroll records.
Licenses and Permits
Depending on your industry or location, you may need:
- Food handling or alcohol licenses
- Building and safety permits
- Professional registration (e.g. electrician, builder, medical professional)
Use the Australian Business Licence and Information Service (ABLIS) to find the licenses you need.
Step 5: Set Up Sound Financial Practices Early
Even for micro or home-based businesses, set financial systems up from the start:
- Open a dedicated business bank account
- Set up basic bookkeeping (spreadsheets, accounting software, or apps)
- Use digital tools to issue invoices, track payments, and store receipts
- Reconcile accounts monthly to keep financials accurate
As your business grows, it may be time to engage a bookkeeper or accountant to help with BAS, reporting, and strategy.
Step 6: Know Where to Get Ongoing Support
If managing your own tax, registration, or reporting feels overwhelming, don’t hesitate to ask for help. Working with a firm like TTS & Associates ensures that:
- Your business stays compliant
- All ATO and ASIC deadlines are met
- You avoid costly penalties
- You receive expert advice tailored to your structure and goals
Outsourcing some of the complexity lets you focus on growing your business with confidence.
Ready to Start Your Business?
Establishing a business in Australia is more than filling in forms—it’s about building a compliant, sustainable operation from day one. By taking the time to understand your obligations and putting solid systems in place, you can avoid common pitfalls and set yourself up for long-term success.
If you’re unsure about tax, legal structure, or compliance issues, contact us. The experienced team at TTS & Associates can assist with registration, BAS, bookkeeping, tax returns, and ongoing business advice.
This article is general information only and does not constitute financial or legal advice. Always consult a professional before making decisions related to your business.
