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Business structure

Sole trader

A sole trader may be the right business structure for you.

A sole trader is the simplest form of business structure and can be inexpensive and easy to set up. It tends to suit people who:

  • want to be the only owner and have full control of the business
  • have a hobby or side hustle that has become a business.

As a sole trader you’re responsible for everything in your business including debts, losses and day-to-day decisions. You can employ people too.

6 required registrations

We found 6 required registrations your business needs to apply for.

Steps for registering your business

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1 Register your business

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You need an individual TFN if you use a sole trader business structure.

A TFN is your unique number in the tax system.

You use your individual TFN for your business.

Learn about TFNs on the Australian Taxation Office website.

Processing time

Instant with a strong myID

28 days without a strong MyID

Cost

Free

Apply through ato.gov.au

You need an ABN if you use a sole trader business structure.

An ABN is a unique number that identifies your business. You need it for tax and other business activities.

Businesses that have ABNs are listed in ABN Lookup.

Before registering

You need an individual tax file number (TFN) to register for an ABN.

Processing time

Around 10 minutes

Cost

Free

Register through abr.gov.au

You need to register your business name if it is different to your personal name.

Check if the business name you want is available with the business name check tool.

Before registering

You need an ABN or an ABN application reference number to register a business name.

Processing time

Usually less than 48 hours

Cost

$47 for one year

$108 for 3 years

Apply through ASIC Connect

2 Register for taxes

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You need this because ...

Getting set up for ATO Online Services means creating a myGov account and linking it to the ATO.

Processing time

Instant

Cost

Free

Register for myGov ?

You need to pay GST if you turn over $75,000 or more in a 12-month period.

You need to pay GST if you provide taxi, limousine or ride-sourcing travel for passengers.

You need to pay GST if you sell or import luxury cars.

GST is a tax of 10% on most goods and services.

When you are registered for GST you:

  • include GST in the price you charge for goods and services
  • claim credits for GST on the cost of goods and services you buy for your business.

You can choose to register for GST even if you do not need to.

Learn how GST works on the Australian Taxation Office website.

Before registering

To register for GST you need an ABN and to be registered with ATO Online Services.

Processing time

Instant

Cost

Free

Register through ATO Online Services

You need to register for PAYG withholding if you hire employees.

PAYG withholding is the tax you take out of your employees’ wages and pay to the Australian Taxation Office (ATO) on their behalf.

It prevents employees from having a lot of tax to pay at the end of the financial year.

Learn about PAYG withholding.

Before registering

To register for PAYG withholding you need an ABN and to be registered with ATO Online Services.

Processing time

Instant

Cost

Free

Register through ATO Online Services

3 Other registrations

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4 Explore registrations not covered in this tool

This tool covers some basic registrations. You may need other registrations to start your business or as it grows.