Thinking about starting a business?
It’s easy to get caught up in the exciting stuff — choosing a name, designing a logo, setting up Instagram and building a website.
But before you get too far into the fun stuff, there are some important foundations to get right.
From choosing your business structure and registering your business name to getting an ABN, checking licences and permits and understanding your tax obligations, there’s quite a bit to work through.
The good news is that you don’t have to work it all out yourself.
There are some excellent Australian Government tools and resources available to help you understand what you need to do.
At Rise to Thrive Solutions, we like to keep things simple, so here’s our starting point.
This article provides general information only and isn’t legal, financial or tax advice. Business requirements vary depending on your circumstances, industry and location. Always check the current requirements with the relevant government department or a qualified professional.
Start with SET
Before getting overwhelmed by everything you think you need to do, use our simple SET approach:
S — Set your foundations
Work out what you’re actually building, who you’re helping and how your business will operate.
E — Explore what you need
Look into your business structure, registrations, licences, permits, insurance, tax obligations and other requirements.
T — Take the next steps
Once you know what’s required, start putting the practical pieces in place — your business name, ABN, website, email, marketing and systems.
You don’t need to do everything on day one.
You just need to know what comes next.
1. Is your business idea ready?
Before registering anything, spend some time making sure there’s a genuine opportunity for your business.
Ask yourself:
- What am I selling?
- Who am I selling it to?
- What problem am I solving?
- Why would someone choose me?
- Who are my competitors?
- What are people currently paying for similar products or services?
- How will I find my first customers?
- How much will it cost me to get started?
- How will the business make money?
You don’t need a 50-page business plan to answer these questions.
But you do need to understand what you’re getting yourself into.
The Australian Government’s business.gov.au Guide to Starting a Business is a great place to begin. It takes you through the key stages, from checking whether you’re ready and defining your business through to registrations, finances and running the business. (business.gov.au)
2. Choose your business structure
One of the first important decisions you’ll need to make is your business structure.
The most common structures are:
- Sole trader
- Partnership
- Company
- Trust
Your structure isn’t just a technicality. It can affect your tax obligations, personal liability, costs, paperwork, control of the business and even which registrations or licences you may need. (business.gov.au)
Sole trader
A sole trader is generally the simplest business structure and means you’re running the business yourself.
Partnership
A partnership is generally two or more people running a business together and sharing income or losses.
Company
A company is a separate legal entity from its owners and comes with additional legal, financial and reporting responsibilities.
Trust
A trust is a more complex structure where a trustee is responsible for operating the business.
Which one is right for you?
There isn’t one answer that works for everyone.
Your circumstances, business type, expected income, risk and future plans all matter.
If you’re unsure, get professional advice rather than choosing a structure simply because someone else uses it.
You can also use the Australian Government’s business registrations tool to help you work out which structure and basic registrations may apply to you. (business.gov.au)
3. Choose your business name — but check it properly first
Choosing your business name can be one of the most exciting parts of starting a business.
But before you buy the domain, print business cards or invest in branding, check the name first.
You should look at:
ASIC business names register
Search ASIC’s business names register to see whether the name is already registered or whether there are similar names.
Trade marks
A business name registration does not give you exclusive rights to the name.
If you want stronger protection for your brand, you need to look at trade mark protection through IP Australia.
Domain name
Check whether the matching domain is available.
Social media
Check whether the name or a close variation is available across the social platforms you expect to use.
Business.gov.au recommends checking business names, trade marks, domains and social media before committing to a name. (business.gov.au)
Our tip: Don’t just check whether your exact name is available. Look at similar names too.
You don’t want to build a brand only to discover later that another business has a very similar name in the same industry.
4. Do you need to register your business name?
This is where it can get a little confusing.
If you’re operating as a sole trader under your own first name and surname, you generally don’t need to register a separate business name.
But if you’re trading under a name that’s different from your own name, you’ll generally need to register that business name. (ASIC)
For example:
Jane Smith operating as Jane Smith
→ generally no separate business name registration.
Jane Smith operating as Jane’s Creative Studio
→ business name registration would generally be required.
Business names are registered nationally rather than separately in each state or territory. (business.gov.au)
You can register a business name through ASIC or through the Australian Government’s Business Registration Service.
5. Business name vs company name — they’re not the same thing
This is an important distinction.
Registering a business name is not the same as registering a company.
If you decide to operate as a company, you register the company with ASIC and receive an Australian Company Number (ACN).
An ACN is different from an Australian Business Number (ABN). (business.gov.au)
For example, you might have:
Company:
Rise to Thrive Solutions Pty Ltd
Business name:
Rise to Thrive Solutions
If your company operates under a different name from its registered company name, you may also need to register that business name. (ASIC)
If you’re unsure whether you need a company or another business structure, this is a good point to speak to an accountant or business adviser.
6. Get your ABN
An Australian Business Number (ABN) is a unique number used to identify your business when dealing with government, other businesses and the public.
Most businesses need an ABN, although eligibility depends on your circumstances.
The Australian Government’s Business Registration Service allows you to apply for an ABN and complete other relevant registrations. (business.gov.au)
One important thing to remember:
An ABN isn’t the same thing as registering a company or business name.
They’re separate things that can form part of setting up your business.
7. Work out your tax registrations
Your tax obligations will depend on your business structure, turnover, what you sell, where you operate and whether you have employees.
You may need to consider things such as:
- Tax File Number
- GST
- PAYG withholding
- Payroll tax
- Superannuation
- Business records and bookkeeping
Don’t assume that every business needs to register for GST, for example.
The requirements depend on your circumstances.
The ATO is the best place to check your tax obligations, and an accountant can help you understand what applies to your business.
8. What licences and permits do you need?
This is one of the big things people can overlook.
Just because you’ve registered your business doesn’t mean you’re automatically allowed to do everything you want to do.
Depending on your business, you may need specific:
- Licences
- Permits
- Registrations
- Approvals
- Industry certifications
What you need can depend on:
- Your industry
- What your business does
- Where you operate
- Your state or territory
- Your local council
- Whether you’re operating from home
- Whether you have employees
So how do you find out?
Use ABLIS
The Australian Business Licence and Information Service (ABLIS) is one of the most useful tools to know about when starting a business.
You enter information about your business and location and it helps identify the licences, permits and other requirements that may apply.
Business.gov.au specifically recommends ABLIS for working out which licences and permits you may need. (business.gov.au)
This is particularly important if you’re in an industry such as:
- Food
- Beauty
- Health
- Building and construction
- Trades
- Transport
- Childcare
- Hospitality
- Retail
- Professional services
And if you’re working from home, don’t automatically assume you don’t need approval.
Home-based businesses can still have requirements relating to council, planning, licences, tax and insurance. (business.gov.au)
9. Check your local council requirements
Your state or territory isn’t the only place you need to check.
Your local council may have its own requirements depending on what you do and where you operate.
This can be particularly important if you:
- Run a business from home
- Have customers visiting your property
- Sell food
- Have signage
- Make changes to your premises
- Operate from a commercial property
- Have noise, parking or waste considerations
This is another reason ABLIS is useful — it can help identify requirements based on your location and business activities. (business.gov.au)
10. Don’t forget insurance
Insurance isn’t necessarily exciting, but it can be an important part of protecting your business.
Depending on what you do, you may need to consider things such as:
- Public liability insurance
- Professional indemnity insurance
- Product liability insurance
- Business property insurance
- Cyber insurance
- Workers compensation if you employ people
The right insurance will depend on your business.
Don’t assume that your home insurance automatically covers your business activities if you’re working from home.
11. Set up the practical basics
Once you’ve worked through the foundations, you can start putting the day-to-day pieces in place.
Think about:
Business banking
Consider having a separate account for your business finances.
Accounting and bookkeeping
Choose how you’ll keep track of income, expenses and records.
Invoicing
Decide how you’ll invoice customers and how you’ll accept payments.
Business email
A professional email using your own domain can make a big difference.
Domain name
If you’ve chosen your business name, consider securing the domain even if your website isn’t ready yet.
Website
You don’t need a huge website to start, but customers need somewhere to find you and understand what you offer.
Google Business Profile
If you operate locally or serve customers in a particular area, look at setting up your Google Business Profile.
Social media
Choose the platforms that actually make sense for your customers rather than feeling like you need to be everywhere.
12. Use the Australian Government resources available to you
One of the best things about starting a business in Australia is that there is a lot of free information available.
Here are some of the sites worth bookmarking.
business.gov.au
Start here.
The Guide to Starting a Business covers the major steps involved in starting a business, including choosing your structure, choosing a name, getting an ABN, registering your business, checking licences and permits and organising your finances. (business.gov.au)
business.gov.au – Guide to Starting a Business
Business Registration Service
The Australian Government’s Business Registration Service allows you to apply for an ABN, register a company or business name and apply for relevant tax registrations. (Business Registration Service)
ASIC
Use ASIC to check business names, register a business name and access information about registering and running a company. (ASIC)
ATO
The Australian Taxation Office is your source for information about tax, GST, record keeping and other tax obligations.
IP Australia
If you’re building a brand that you plan to invest in, look into trade marks early rather than assuming your business name registration protects you.
myGov
myGov provides access to Australian Government services and information, including services relevant to people working and running businesses.
ABLIS
Use the Australian Business Licence and Information Service to find licences and permits that may apply to your business.
ABLIS – Australian Business Licence and Information Service
Your Start Stronger Checklist
Before you launch, work through these basics:
- Research your business idea and market
- Identify your target customer
- Check your competitors
- Decide on your business structure
- Choose a business name
- Check ASIC for existing business names
- Check IP Australia for existing trade marks
- Check your domain name
- Check your social media handles
- Apply for an ABN if you’re eligible
- Register your business name if required
- Register your company if you’ve chosen a company structure
- Check your tax registration requirements
- Check ABLIS for licences and permits
- Check your local council requirements
- Look at appropriate insurance
- Set up your business banking
- Choose accounting/bookkeeping software
- Set up your business email
- Create your website
- Set up relevant online profiles
- Start planning your marketing
Don’t let the list overwhelm you
Looking at that checklist might make starting a business seem like a lot of work.
And honestly, there is a fair bit to consider.
But you don’t need to tick every box in one weekend.
Set your foundations. Explore what you need. Then take the next step.
The most important thing is knowing what you need to investigate before you commit time and money to your business.
And when you’re not sure, use the official resources, ask questions and get professional advice where you need it.
You don’t need to know everything about running a business before you start.
You just need to Start Stronger.
