Starting a business is exciting, but the paperwork and rules can feel overwhelming. If you’re asking, “How do I Start a Business?”, this guide explains how to start a business in Australia step by step—covering structure, registrations, taxes, and practical setup—so you can focus on serving customers. Where possible, we link to official guidance so you can check the rules yourself (see the Australian Government’s business.gov.au guide to starting a business).

How do I Start a Business Setup

Choose a structure that fits your plans

Your structure affects tax, liability and control. The main options are:

  • Sole trader – fast, low cost, you use your own Tax File Number (TFN). You’re personally liable for debts and you report business income in your individual return.
  • Partnership – two or more people share profits and responsibility. A written partnership agreement reduces disputes.
  • Company (Pty Ltd) – a separate legal entity, directors owe duties and the company lodges its own tax return. You’ll register with ASIC and later apply for an ABN.
  • Trust – a trustee holds assets for beneficiaries. Useful for flexibility and asset protection, but setup and administration are more complex.

If you expect to hire staff, seek finance, or bring in co-owners, consider a company or trust. The ATO’s “Ready for business” page outlines the tax steps for new businesses (see ATO ‘Ready for business’).

Register your business details

Most new businesses need:

  • Australian Business Number (ABN) – apply online; it links your business to the tax system and is required for GST and many invoices (see ATO BAS overview).
  • Business name – if you trade under anything other than your personal legal name, register a business name with ASIC. The ASIC site explains rules and fees and lets you apply online (see ASIC – register a business name).
  • Director ID – if you intend to be a director of a company, you must obtain a director identification number through ABRS before registering the company (see ABRS – apply for a director ID).

Work out which taxes apply

  • GST (Goods and Services Tax) – register if your GST turnover will be $75,000 or more. Once registered, you’ll charge 10% GST on taxable sales and claim credits on eligible purchases. You report GST in your activity statements (see ATO BAS due dates).
  • PAYG withholding – if you pay employees or directors, register to withhold tax from wages and report it through your BAS and Single Touch Payroll.
  • PAYG instalments – once profitable, you may enter the instalment system to pre-pay income tax during the year.

Set up a simple cash-flow forecast so you can set aside funds for BAS and income tax as they fall due.

Licences, permits and insurance

Check industry and local requirements using government tools. Food businesses, trades, transport and health services often need licences. Public liability insurance is common; professional indemnity is vital if you give advice. If you employ staff, workers’ compensation insurance is mandatory in your state or territory.

Open accounts and build your finance toolkit

  • Bank account – use a separate account for business takings and expenses to keep records clean.
  • Accounting software – choose software that connects to your bank and maps to BAS labels (G1, 1A, W1 etc.). The ATO’s Simpler BAS guide helps with GST classifications (see ATO Simpler BAS guide).
  • Record-keeping – create a cloud folder structure for invoices, receipts and payroll reports. Keep records for at least 5 years.

Plan your operations

Draft a one-page plan covering customers, pricing, delivery and payment terms. Register a domain, set up basic web and social profiles, and decide how you’ll issue quotes and invoices.

Plan your operations - how do i start business

Build a compliance rhythm

Success with compliance is about routine:

  1. Reconcile weekly – match bank transactions; attach receipts.
  2. Review monthly – check GST coding, payroll and super.
  3. Prepare quarterly – draft your BAS early; sense-check for spikes.
  4. Year end – close off accounts, stocktake if relevant, and meet your income-tax lodgement date.

Using a registered BAS or tax agent can add accuracy checks and, in some quarters, extra lodgement time. TTS & Associates’ step-by-step explainer is a helpful companion as you work through how to start a business in Australia (see our Starting a Business in Australia: A Step-by-Step Guide).

Common pitfalls (and easy fixes)

  • Mixing personal and business spending – fix with a separate bank account and card.
  • Registering for GST too late – forecast turnover; if you’ll cross $75,000, register early to avoid back-payments.
  • Weak invoicing – include your legal name, ABN, date, description, price and GST if registered; number invoices consecutively.
  • Cash-flow surprises – estimate BAS and tax each month and set funds aside.
  • Ignoring licences – use official checkers before you start trading.

Next steps checklist

  • Decide structure and, if company, apply for director ID.
  • Apply for ABN and (if needed) register a business name.
  • Set up bank account, accounting software and basic website.
  • Assess GST and PAYG obligations and register where necessary.
  • Build a 90-day cash-flow and mark BAS due dates now.

Use official guidance and qualified support when needed—the rules are clear, and help is available. For a detailed walkthrough from planning to launch, read our in-depth guide at TTS & Associates (see Starting a Business in Australia: A Step-by-Step Guide).

General information only – seek professional advice before acting.