Can I change my business structure after registering?

Yes. You can change your business structure as your business grows and your needs change. For example, you might start as a sole trader and later register a company to access limited liability or attract investors. Keep in mind that changing structures can have tax, legal and administrative implications, so it's best to get advice from an accountant or business advisor before making the switch.

What factors should I consider when choosing a business structure?

Think about your business goals, the level of control you want, how much personal liability you're willing to take on and your expected earnings. Tax obligations, ownership arrangements and plans for raising capital are also key. It's often helpful to weigh up both short-term simplicity and long-term flexibility when deciding on the right structure.

How does my business structure affect my tax obligations?

Each business structure is taxed differently. Sole traders are taxed as individuals, while companies pay a corporate tax rate on profits. Partnerships and trusts have different reporting and distribution rules. Choosing the right structure can influence your tax rate, deductions and compliance workload, so it's wise to get professional tax advice before finalising your setup.

Do I need an ABN for every business structure?

Yes, most Australian businesses need an Australian Business Number (ABN) to operate legally and to interact with the ATO and other businesses. However, if you change your business structure, you may need to apply for a new ABN. For example, moving from a sole trader to a company structure requires a new ABN because it's considered a different legal entity.

Can business loans differ depending on structure?

Yes. Lenders assess businesses differently based on their structure. A sole trader's personal credit history may heavily influence loan approval, while companies are often evaluated on business performance and assets. Partnerships might need all partners to guarantee the loan. Understanding how your structure affects borrowing can help you prepare stronger loan applications.

Is it expensive to change my business structure?

Costs vary depending on the type of change. Registering a company or setting up a trust can involve ASIC fees, legal costs and accounting advice. You might also need to transfer assets, update contracts and notify the ATO. Planning the change carefully can help minimise both disruption and expense.

Should I register for GST when structuring my business?

You must register for GST if your business has a turnover of $75,000 or more. However, some businesses choose to register voluntarily to claim GST credits or appear more established. Whether you register at the start or later depends on your projected income and business activities.

How does business structure affect liability?

Your structure determines who is legally responsible for debts and obligations. Sole traders are personally liable, meaning personal assets are at risk. Companies, on the other hand, offer limited liability, separating personal and business assets. Partnerships and trusts have shared or defined responsibilities depending on how they're set up.

What's the easiest structure for a new small business?

For many startups, registering as a sole trader is the simplest and least expensive option. It's quick to set up, has minimal reporting requirements and gives you complete control. However, as your business expands or takes on more risk, you might consider restructuring to a company or trust.

Do I need professional advice before choosing a structure?

While it's possible to choose and register a structure yourself, getting professional help can save time and prevent costly mistakes. Accountants, financial advisors and legal experts can assess your goals and recommend the most tax-effective and compliant option for your circumstances.