Registering and obtaining an Australian Business Number (ABN) is free. Generally, both companies and sole traders will need an ABN.
If registering a business name applies to you, business name registration is $36 for one year or $84 for three years.
A sole trader is a simple business structure to set up as there aren’t many legal or tax obligations. It’s important to understand that when you operate as a sole trade you are:
Separate business bank accounts are recommended, but not compulsory for sole traders. You may be liable for bank fees, depending on the type of account you choose to open.
A company is a more complex business structure to set up as there are quite involved legal and taxation obligations. A company is a separate legal entity. This means it has the same rights as a natural person and can incur debt sue and be sued.
Registering a company will cost you $488 for a proprietary limited company. You will receive an Australian Company Number (ACN) when the Australian Securities and Investments Commission (ASIC) registers your company. If you want to run your business as a company, you need to register your company and get an ACN before you can get your ABN. Companies must have a separate bank account for the business. The company may be liable for bank fees, depending on the type of account it opens.
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