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Company, Partnership or Sole Trader? We guide you to the right business structure.
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The sole trader structure is the simplest form of business structure where there is no division between business and personal assets. Most sole traders opt to trade under their own name although you can choose to register a business name.
If you are running a business you will need an ABN.
A company is a more complex legal entity whose existence is separate from its owners and managers. Possessing a legal status, a company has rights similar to that of a living person meaning that it can incur debt, sue and be sued. We strongly suggest obtaining professional advice before making this decision.
If you estimate that you will earn over $75,000 per annum then yes you have to register and charge GST.
An ABN (Australian Business Number) is a unique 11 digit number issued by the ATO to all eligible entities. The ABN system works together with the GST and PAYG withholding system identifies your company to other businesses and various government agencies.
If your activity, as a whole, is commercial with an aim to make a profit then yes, you will be running a business.
An Australian Company Number (usually shortened to ACN) is a unique nine-digit number issued by the Australian Securities and Investments Commission (ASIC) to every company registered under the Commonwealth Corporations Act 2001 as an identifier.
A business name is simply the name under which you want to conduct your business or want your customers to identify the business with. You must register a business name in Australia, unless you trade under your own name, or fall within an exemption.