Starting a Business? Sort the Structure Before the ABN, Because Changing Your Mind Later Costs More.

By - RBizz Team
12/11/2026 01:33 PM
Starting a Business? Sort the Structure Before the ABN, Because Changing Your Mind Later Costs More.

Starting a Business? Sort the Structure Before the ABN, Because Changing Your Mind Later Costs More.

Most new business owners start with the ABN because it is the most visible step. The more important decision comes before it: which structure to trade through. ABNs, tax registrations, bank accounts and contracts are all tied to the entity, so changing it later means redoing much of that work, and can trigger tax costs.

Step 1: Choose the Structure

The main options are sole trader, partnership, company and trust. Each differs in tax treatment, liability, flexibility and running cost. A short conversation with an accountant before you register is far cheaper than restructuring a year in.

Step 2: Register the Entity

  • Sole trader: register for an ABN using your own name.
  • Partnership or trust: needs its own agreement or deed first, then its own ABN and tax file number.
  • Company: registered with ASIC, with a registered office and at least one director. Every company director also needs a Director Identification Number.

Step 3: Register Any Business Name

If you trade under a name other than your own legal name or the company's name, it must be registered. A business name registration is not the same as trademark protection, which is a separate step if you want to protect your brand.

Step 4: Tax Registrations

  • Tax file number for the entity
  • GST registration, which becomes compulsory once your GST turnover reaches the threshold, and is optional below it. Registering voluntarily can make sense if you want to claim GST credits on start-up costs.
  • PAYG withholding, required once you employ staff or make certain payments
  • Other registrations depending on industry, such as fuel tax credits or wine equalisation tax

Step 5: Obligations That Start With Your First Employee

Super, payroll software with Single Touch Payroll, workers compensation insurance and the correct award or agreement. Payroll tax may apply later as wages grow, depending on your state.

Step 6: Licences and Insurance

Many industries require licences or permits. Public liability and professional indemnity insurance are worth considering before you take on clients, whether or not they are legally required in your trade.

Step 7: Set Up the Books Properly

Open a separate business bank account, choose accounting software, and decide how receipts and records will be captured from day one. Starting with clean records is much easier than fixing them afterwards.

The Most Common Setup Mistakes

  • Registering as a sole trader and moving to a company later without planning for the tax cost
  • Mixing personal and business money
  • Registering for GST late, or not at all, once over the threshold
  • Employing someone before payroll and super are set up

RBizz helps new and growing businesses with structure advice, registrations, compliance set-up and bookkeeping systems from day one. Book a free discovery call before you register.


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RBizz Team

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