Steps involved in starting up as a Sole Trader
Becoming a sole trader puts you in charge and makes you responsible.
A sole trader business structure is a person trading as the individual legally responsible for all aspects of the business. You control and manage the business, and although you 'trade' on your own, you can still employ people to work for you.
To set up as a sole trader, you need to:
- Register a business name with the Australian Securities and Investments Commission (ASIC), unless you're running the business under your own name (first name and surname)
- Apply for an Australian Business Number (ABN)
- Register for Goods and Services Tax (GST) through the ATO Business Portal, if your annual turnover is from $75,000.
Sole traders should also consider:
- Personal superannuation arrangements
- Personal illness, disability and death insurance.
Before deciding on your business structure, it's important to get professional advice from a business adviser, solicitor or accountant. They can help you choose the structure that best suits your personal circumstances and business objectives.
When you're taking the first steps to becoming a sole trader, visit the Australian Government's Business website for a range of tools and resources.