Business Start Up: Looking to start a business? Let The Tax Factor help you.
Starting a business doesn’t have to be complicated or confusing. It should be an exciting time. A time where you are planning, creating and ready to live your dreams. However, to protect yourself, it’s important that you are aware of what’s involved. The Tax Factor can help you get started the right way, right from the beginning.

There are four significant steps
to starting a business:

  • Business Structure: Which is the right one for you?
  • ABN: Applying for your own Australian Business Number (ABN)
  • Business Name: Checking your business name is available and registering it.
  • Domain Name (the name you want to use for your website and business email): Checking your domain name is available and registering it.

Business Structures

The main business structures to consider are sole trader, partnership, company or trust. Most businesses start as a sole trader and progress to a company structure. A sole trader is an individual operating a business in their own name and is legally responsible for all aspects of the business. A company structure offers a separate legal entity for the business. This entity is legally separate from the owners of the business, whereas a sole trader is one and the same. A partnership is two or more people running the business together, but not using a company structure. A trust is a more complex structure where the trust entity holds property or income for the benefits of others.

When starting up a business, deciding on the best business structure can be overwhelming. The Tax Factor can assist you with this process. Once you have selected the best structure, we can also help with applying for your ABN, registering your business name and domain name.

Start the process today, contact The Tax Factor on 1300 829 322 or

Company Set Up

Running your business as a company can offer many legal and tax benefits. When setting up a company for your business, you are creating a proprietary limited company (Pty Ltd). A Pty Ltd is a private company with at least one shareholder and a limited number of shares. One of the benefits of a company is that the liability of the shareholders is limited to the number of shares they hold. For this reason, it’s one of the most popular company structures in Australia and ideal for small business owners.

When forming your company, you need to consider the following:

  • Who will be the company directors
  • Who will be the company shareholders
  • The name of the company

The minimum requirement is to have at least one director and one shareholder over the age of 18. To form a company, at least one of the directors must live in Australia and the company must have a physical address for the registered office; a post office box is not allowed for this purpose. Prior bankruptcy and certain criminal convictions can restrict director eligibility. ASIC approves all company names and provides naming guidelines to fast-track approval. Company names containing foreign words or made up names often require manual approval from ASIC and can take longer to process.

On the company application form, the following information needs to be provided:

  • Full name, residential address, date and place of birth for all directors
  • Full name, residential address and number of shares for each shareholder
  • Address of registered office
  • Principal place of business

How you structure your business and company determine specific tax and legal implications. It’s a decision that shouldn’t be taken lightly and without professional advice. We recommend speaking to The Tax Factor first to discuss your situation prior to forming a company. We can explore several options and recommend the best approach for you.

Start the process today, call The Tax Factor on 1800 829 322 or

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Take back your time and start the bookkeeping process today, call us on 1300 Tax Factor (1300 829 322) or complete our online form.

Call us today and book your free consultation. Think Beyond Tax.

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