So you’ve got a business idea—and it’s a good one. Maybe you’re dreaming of selling handmade products, launching a consultancy, opening a local shop, or building an online brand.

Whatever your goal, one thing is clear: you’re ready to start your own business.

But here’s the thing: Ideas are easy. Setting up a business? That’s where most people get stuck.

Luckily, you’ve landed on the right blog. This guide breaks down everything you need to know about business setup in Australia—from legal structure to registration, tax, branding, and growth. Whether you’re starting small or going big, this is the roadmap to get your dream off the ground (and done right).

3 people taking in the office how to set up business

🚀 Why Business Set-Up Matters

Setting up your business the right way from the beginning can save you thousands in future costs, hours of admin headaches, and even legal trouble.

Here’s what a proper business setup gives you:

✅ Legal protection
✅ Tax advantages
✅ A professional image
✅ The confidence to grow

Let’s walk through the process step by step.

🧱 Step 1: Choose Your Business Structure

Before anything else, you need to decide how your business will operate legally. This is called your business structure, and it affects your tax, risk, and responsibilities.

The 4 Main Types of Business Structures in Australia:

1. Sole Trader

Best for: Freelancers, tradies, side hustlers, solo entrepreneurs
Easy to set up and control
You're personally liable for debts and taxes

2. Partnership

Best for: Two or more people starting together
Shared control, shared responsibility
Still personally liable

3. Company (Pty Ltd)

Best for: Businesses looking to grow, raise funds, or employ staff
Separate legal entity = limited personal liability
More complex compliance and reporting

4. Trust

Best for: Asset protection, family businesses, or advanced tax planning
Needs a trustee and legal documentation
Complex but strategic

🔍 Pro Tip: If you're unsure, talk to a registered accountant or legal advisor. Choosing the wrong structure can cost you money down the track.

📋 Step 2: Register Your Business in Australia

Once you’ve picked your structure, it’s time to make it official. Here’s how:

1. Apply for an ABN (Australian Business Number)

This is a unique number that identifies your business to the government and public. You’ll need it to:

Invoice clients
Register for GST
Open a business bank account

You can apply online at the Australian Business Register (ABR) website. It’s fast and free.

2. Register Your Business Name

If your business name isn’t your name, you need to register it with ASIC (Australian Securities and Investments Commission).

Make sure it’s:

Available (search ASIC’s register)
Memorable and brandable
Not already trademarked

Also, grab your domain name and social handles while you’re at it—even if you’re not building a website just yet

3. Get the Necessary Licences & Permits

Depending on your industry and location, you may need:

Council permits (especially for home-based or food businesses)
Health or safety certifications
Industry-specific licences

Use the Australian Business Licence and Information Service (ABLIS) to check what’s required.

💼 Step 3: Set Up Your Business Finances

Let’s be honest—poor money management is one of the biggest reasons startups fail. Setting up your finances early helps you avoid issues down the road.

Here’s what to do:

1. Open a Business Bank Account

Don’t mix business with personal. Having a dedicated bank account keeps your finances clean and makes bookkeeping easier.

2. Choose Accounting Software

Platforms like Xero, MYOB, or QuickBooks help you:

Send invoices
Track income and expenses
Lodge BAS statements
Stay compliant with the ATO

You can link your account to your bank and even automate recurring invoices and reminders.

3. Understand Your Tax Obligations

Depending on your structure, you may need to:

Pay income tax
Charge and report GST (if you earn over $75k/year)
Pay PAYG if hiring staff
Keep records for 5+ years

If tax makes your head spin, hire a book-keeper or accountant. It’s worth every cent.

📢 Step 4: Build Your Brand and Online Presence

Even if your business is brand new, how you present yourself matters. Strong branding builds trust—and trust builds customers.

1. Design Your Logo & Visual Identity

You don’t need to spend thousands, but do invest in:

A clean, professional logo
A consistent colour palette and fonts
Simple brand guidelines

Use Canva or Fiverr, or hire a local designer.

2. Set Up Your Website

Even a one-page website with your services, contact details, and a call to action can set you apart. Use tools like:

WordPress
Squarespace
Shopify (forcommerce)

Make sure it’s:

Mobile friendly
Easy to navigate
SEO optimised

3. Get on Google & Social Media

Create a Google Business Profile (free!)
Set up accounts on the social platforms your customers use
Start posting helpful, engaging content

📈 Bonus Tip: Share your journey. People love watching small businesses grow.

🛡️ Step 5: Protect Your Business

You’re almost there—but don’t forget to protect what you’ve built.

1. Business Insurance

Depending on your industry, you might need:

Public liability
Professional indemnity
Product liability
Cyber insurance

2. Terms & Conditions/Contracts

If you sell services or products or take deposits, get your legalities sorted. Templates can work early on, but custom contracts are worth it as you grow.

3. Trademark Your Name or Logo (Optional)

If your brand is unique and you want to protect it from copycats, a registered trademark adds peace of mind.

📈 Step 6: Plan for Growth

Once you’re up and running, the real fun begins. Here’s how to do it strategically:

Reinvest your profits
Track key numbers (revenue, expenses, conversion rates)
Build systems and processes
Stay on top of legal & tax deadlines
Ask your customers for feedback and testimonials
Keep learning—business is an ongoing journey

✅ Final Checklist for Business Set Up in Australia

Here's your quick summary:

✔ Choose the right structure. ✔ Apply for your ABN. ✔ Register your business name. ✔ Set up your finances and accounting. ✔ Build your brand and online presence. ✔ Understand your legal and tax responsibilities. ✔ Get the right insurances and documents. ✔ Launch and grow with confidence

Need Help With Your Business Set-Up?

Don’t let red tape hold you back from bringing your vision to life. We specialise in helping Aussie entrepreneurs with:

Business registration
ABN and GST setup
Structure advice (sole trader, company, etc.)
Website and branding support
Ongoing business admin

👉 Book a free consultation today, and let’s get your business off the ground fast, simple, and stress-free.

You’ve got the idea. We’ll help you make it real. Let’s get your business set up together.

How to Set Up a Business in Australia