In this article, we will tell you how to register your business in Australia.
There are 4 steps to follow when you registering your business:
- Decide the business structure
- Apply an Australian Business Number (ABN)
- Register your business name
- Apply a Tax File Number (TFN)
- Decide the business structure
Before starting your business, you need to clarify your business structure. Each structure has its own implications and liabilities. There are four types of business structures: sole trader, partnership, company and trust.
Sole trader is the most common type of business structure and it is easy to manage for the owner. If you operate your business as a sole trader, you are the only owner and you control and manage the business. A partnership is a business structure made up of 2 or more people who distribute income or losses between themselves. Company is an entity, separate from shareholders, that handles the responsibilities of a business. Trust is an entity that holds property or income for the benefit of others.
Choose your business structure carefully because it might influence your business operations, assets and liabilities.
- Apply an Australian Business Number (ABN)
To run a business in Australia, you should have a Australian Business Number (ABN). ABN is a unique 11-digit number that identifies your business. ABN is not a Tax File Number (TNF) but it could be used for various tax and business purposes. If you are a solo business owner, the ABN is not mandatory but you will need to register your business with a GST.
- Register your business name
Deciding a business name is also essential. To check if the business name you want is available on the National Names Index (NNI). Before you register your business name, you must apply or have an ABN. You should register your name as a trade mark to protect it being used by others.
- Apply a Tax File Number (TFN)
A tax file number (TFN) is your personal reference number in the tax and superannuation systems, and it is free to apply. A sole trader can use the individual TFN. However, if you operate a business as a partnership, company or trust, you will need to register a business TFN.
When setting up a business, to have appropriate licenses and follow the federal and state regulations are necessary. If you find there is any difficulties or challenges, you can consult professions for advise.
If you need any suggestions and seek assistance, contact BOA & Co. accountants on 1300 952 286, our Specialist will be pleased to assist you.