The small business specialists
Phone: 13 12 49
A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up. As a sole trader you will be legally responsible for all aspects of the business. You’ll generally make all the decisions about starting and running your business and you can employ people.
You don’t have to register a business name if you use your own name. If you choose not to use your own name you will need to register a business name with the Australian Securities and Investments Commission.
TIP: Before choosing a business name check its availability as a domain name (your website address). Even if you don’t plan to set up a website immediately, checking and reserving your domain name can avoid problems later.
Sole traders are taxed as individuals and pay income tax at personal rates.
You will need to register your business for goods and services tax (GST) if your annual turnover is expected to be more than $75,000.
For more information regarding tax obligations for sole traders visit the ATO website.
A sole trader is responsible for the liabilities of the business. Liability is unlimited and includes all personal assets, including any assets jointly-owned with another person, such as a house.
You are also not covered by workers’ compensation should you injure yourself at work. This may result in a loss of income if you cannot work and you may still be required to pay any expenses for your business, such as loan repayments.
Learn more about the various insurances available for your business.