Starting a business in Australia: your first-month checklist

Starting a business is exciting. The admin side doesn’t have to be stressful if you take it one step at a time. Here’s the order we recommend to every new client.

1. Choose your business structure

Your structure decides how you’re taxed, who’s responsible for debts and how much paperwork you’ll have. The four common options are:

• Sole trader: simple and cheap to set up. You and the business are the same legal person.
• Partnership: two or more people sharing income and responsibility.
• Company: a separate legal entity with its own tax rate. More set-up and reporting, but more protection.
• Trust: a trustee runs the business for the benefit of others. Often used by families, and best set up with advice.

There’s no single right answer. It depends on your income, your plans and your risk. This is exactly what we talk through in a free consult.

2. Apply for an ABN

An Australian Business Number (ABN) identifies your business to the government and other businesses. It’s free to apply for, and you’ll need it before you send your first invoice. The application asks about your structure, which is why step one comes first.

3. Decide on GST

You must register for GST once your GST turnover reaches $75,000 a year ($150,000 for non-profits), or from day one if you drive a taxi or ride-share. Below that it’s optional. Registering early can make sense if your customers are mostly GST-registered businesses, but it also means lodging a BAS.

4. Register your business name

If you’re trading under any name other than your own, register it with ASIC. A business name is not a trademark, so if your brand matters, look into that too.

5. Open a separate bank account

Keep business money separate from day one. It makes bookkeeping faster, BAS easier and tax time far less painful.

6. Set up your accounting software

Cloud software like Xero or MYOB connects to your bank, sends invoices and tracks GST automatically. Set it up properly at the start with the right accounts for your type of business and you’ll save hours every quarter.

7. Plan for your first BAS

If you’ve registered for GST, your first BAS will be due sooner than you think. Put money aside for GST as you go (one-eleventh of your GST-inclusive sales is a good rule of thumb) so the bill is never a shock.

Hiring someone?

Before your first pay run, register for PAYG withholding, use Single Touch Payroll (STP) software and make sure you understand your super obligations.

Want a hand?

Our new business page walks through each step, and our free 30-minute consultation can get you from idea to ready-to-trade. Book a free consult.

This article is general information only and doesn’t take your personal circumstances into account.