Most new businesses in Australia either commence operating as a sole trader or they register a private (PTY LTD) company. If you start a business as a sole trader, you will need to apply for an ABN and you can either trade under your own name or register a business name.

1. What Are The Advantages of Structuring My Business As
a Company Instead of Operating As a Sole Trader?
Most new businesses in Australia either commence operating as a sole trader or they register a
private (PTY LTD) company. If you start a business as a sole trader, you will need to apply for an
ABN and you can either trade under your own name or register a business name.
The main advantage of operating as a sole trader is that you get to keep all the profits made by
the business after paying tax. The main disadvantage is that the law does not distinguish
between you – the private individual – and your sole trader business. In other words, if
something goes wrong with the business, you are completely legally responsible for its
debts/liabilities.
Registering a company, of which you become a director, means your business is a recognised
legal entity in its own right. Your personal liability as an owner and director of the business can
be limited so you won’t be held completely liable if the company runs into financial problems.
The taxation treatment of an incorporated business (company) also varies from how a sole
trader is taxed. In the case of a company, it is the taxable entity and taxed at a comparatively
lower rate than the higher personal tax rates that you might find yourself paying as a sole
trader.
If you register a company, you can elect to be a paid employee, as well as a director and
shareholder. As a shareholder, you have the opportunity to earn dividends and sell your shares
in addition to earning a salary as a company employee.
The administrative burden is higher when you operate a company rather than running your
business as a sole trader. However, in most instances, because your legal liability is reduced, a
company is the safer business structure for most businesses.

2. One of the easiest ways to register a company is to use an online service such as the one
offered by ptyltdcompany.com.au