I've Decided to Start a Business — What Do I Actually Need to Set Up?

Before you take your first payment, you generally need: a business structure, an ABN, a business name if you're trading under one, GST registration if it applies to you, a way to keep your money separate, and a system for keeping records. Everything else — insurance, software, staff — tends to follow once the basics are in place.

1. Decide your business structure

Sole trader, partnership, company or trust — this decision affects almost everything that follows, including your ABN, your tax obligations and your liability. If you haven't settled this yet, it's worth resolving first.

2. Get an ABN (Australian Business Number)

An ABN identifies your business to the ATO and to the people you deal with. It's free to apply for through the Australian Business Register, and without one, clients may be required to withhold tax from what they pay you, and you won't be able to register for GST.

3. Register a business name (if you need one)

If you trade under anything other than your own personal name (as a sole trader) or your registered company name, you generally need to register that business name with ASIC, separately from your ABN.

4. Register for GST, if it applies to you

This depends on your expected turnover — not your profit. If you expect to reach $75,000 in GST turnover in your first year, registration becomes compulsory within 21 days of knowing that. Below that, it's optional.

5. Open a business bank account

Legally required if you're a partnership, company or trust. Not mandatory for sole traders, but strongly worth doing anyway — it makes tax time, GST reporting and understanding how the business is actually performing far easier.

6. Set up a system for your records

A spreadsheet, a shoebox, or accounting software — what matters is that you have somewhere consistent to capture income, expenses, invoices and receipts from day one, because Australian businesses are legally required to keep these records.

7. Understand your ongoing obligations calendar

Depending on your structure and registrations, this might include a Business Activity Statement (BAS), an annual tax return, superannuation obligations if you hire anyone, and an annual company review if you're incorporated.

This is where a lot of new business owners overwhelm themselves. Some of this only applies once you cross a threshold — GST registration, for example, only becomes compulsory once turnover approaches $75,000. Payroll obligations only apply once you hire someone.

The practical approach is sequencing: get the structural basics right immediately (structure, ABN, records), and layer in the rest as the business actually needs it.

• Business structure decided

• ABN applied for

• Business name registered (if trading under one)

• GST registration assessed — and actioned if required

• Business bank account opened

• Record-keeping system in place

• Key lodgement dates noted (BAS, tax return, annual review)

You don't need an accountant to complete every step above — many of them are straightforward self-service through government portals. But it's worth a conversation early if:

• you're unsure which structure suits your situation;

• your business will involve significant upfront costs, stock or contracts;

• you'll be hiring staff from the outset; or

• you want your record-keeping system set up properly the first time, rather than untangling it a year later.

→ Sole Trader vs Company — Which Business Structure Is Right for Me?

→ ABN, ACN, TFN and GST — What Do All These Numbers Actually Mean?

→ Do I Need to Register for GST?

→ Should I Open a Separate Business Bank Account?

→ What Accounting Records Do I Need to Keep — and for How Long?

SKC Accounting | Knowledge Centre | Knowledge Guide 002

Last reviewed: August 2026

General information only. This guide does not take into account your individual circumstances and is not a substitute for professional accounting, taxation, legal or financial advice.