1800 77 66 46 
Embarking on a new business venture can be both exciting and daunting. Starting a business in Australia is a massive responsibility, and different laws, regulations and requirements mean opening a business requires careful consideration and analysis. To ensure that you achieve compliance, you will need to prepare a checklist for ‘starting a business in Australia’ to make sure that you have everything ticked off.
Starting a business? Lawyers in Sydney recommend ticking off this ‘checklist.’
Before you start operating your business in Australia, owners must register before commencing activity. Here is an essential checklist of what your business will have to register before beginning work, which includes but is not limited to the following:
- Australian Business Number (ABN)
- Goods and Services Tax (GST)
- Tax File Number (TFN)
- Pay As You Go Withholding (PAYG)
It is essential to understand the best business structure for you. If you’re interested in opening up a small business in Sydney, it is best to talk to a lawyer or professional who can assist you with the process. When starting a business in Australia, it is vital to research into the different structures, including but not limited to:
- Sole trader
- Partnership
- Trust
- Company
The advantages and disadvantages of these structures depend on the type of business you would like to start up. These include the size and nature of the operation, tax efficiency, cost of legal and accounting, transfer duty and more.
So what is the difference between these business structures? Here is a brief review of the four main business structures.
| Structure | Advantages | Disadvantages |
| Sole Trader | - Simplest most inexpensive ways to begin a business - Greater control and flexibility - Solely responsible for business debts and profits - Receive full profits - Few legal/tax formalities |
- Personally liable for any debt incurred by the business - Assets could be under threat (including home) |
| Partnership | - Easy and inexpensive to set up - Easier to raise capital - Shared management responsibilities - Combined skills and knowledge |
- You and partner liable for any debt incurred - Responsible for covering the shortfall - It can be difficult to change ownership - There can be disputes over business management and profit-sharing |
| Trust | - Easier to raise capital - Fewer liabilities - Assets can be protected - Flexibility over assets and income distribution |
- Harder and more expensive to set up and maintain - Legally liable for debts Not easy to dissolve |
| Company | - Easier to raise a lot of capital - Own assets can’t be used to pay debts - Easy to sell and pass on ownership - Beneficial for high-risk business ventures |
- Harder and more expensive to set up and maintain - Limited or no control over company affairs - Complex reporting requirements |
Another vital step before starting your own business in Australia is to register your Business Name. Registering is a state legislative requirement whereby all entities are required to register. When you register your business name, it does not necessarily ‘protect’ the trading name but is instead a regulatory requirement. It is also an essential part of intellectual property.
It is also recommended to check availability for and register your domain name. You should do this even if you are not planning on having a website. Before you select a name and register it, it is suggested to check the availability of the domain name.
Not only do you have to register your business name, but it is also vital to protect your name. Registration of your business or company name can provide some protection but does not adequately safeguard you. The only way to ensure you have monopolistic rights in a name or a brand is by registering a trademark.
A trademark is a way of distinguishing goods/services of your business from those of other companies and provides exclusive rights to your business name. It provides you with individual rights to commercially use, licence or sell the trademark.
Following this, you will need to open up a bank account that takes the original name of the business registration. This will allow the account and assets to be separated from personal ones and ensure the accounts and processes are running smoothly.
Depending on the type of business you are establishing, you will need to consider the laws, Australian standards, terms, conditions, policies and procedures that will need to be set out before commencing activity. You must take the time to review these characteristics, laws, all policies and documents relevant to your business' trade.
In addition to policies and procedures, insurances such as public liability insurance is almost always required. It is recommended you talk to a business lawyer in Sydney to understand the coverages and income protection and weigh up the different options available depending on your business.
As well as trading and domain names, it is also recommended to consider the protection of other IP's such as:
- Copyright
- Designs
- Patents
- Trademarks
- Software
This will heavily depend on the type of business you are starting up in Australia as not all companies are the same, therefore having different requirements.
Databases are also a precious resource and your business software and data management policy must be up and running from the start. Do not compromise the importance of investing in equipment that can keep your paperwork and data as organised as possible.
All these elements must be taken into account before commencing business activity to ensure a successful and smooth start.
At Prominent Lawyers, we aim to make a difference to our clients' lives and provide expert advice to ensure they are well prepared for their next step. Our business lawyers in Sydney will help set you up for success by understanding the legal requirements. Our services include business structures, partnerships, companies and trusts, business contracts and intellectual property.
Are you starting your own business? Call us today on 1800 776 646 for expert legal advice.
*The contents in this article is solely intended to provide general information in summary. It does not constitute legal advice and we recommend seeking the assistance of a legal professional to discuss any matters at hand.
