Find Your Formation Path
Navigate company formation questions with our guided decision system. Get personalized answers based on your specific business situation and Australian requirements.
Business Structure Decisions
Planning to operate alone or with partners?
Solo entrepreneurs often benefit from sole trader status initially, offering simplicity and lower setup costs. However, if liability protection matters more than simplicity, consider a proprietary limited company. Partners require different structures - partnerships for shared liability, or companies with shareholder agreements for protection.
What's your expected annual revenue range?
Revenue projections influence structure choice significantly. Under ,000 annually? Sole trader status avoids GST registration requirements. Between ,000-0,000? Consider tax implications of company vs individual rates. Higher revenues often benefit from company structures due to lower corporate tax rates and retained earnings flexibility.
How important is personal asset protection?
High-risk businesses (consulting, construction, professional services) benefit enormously from corporate structures. Personal assets remain separate from business debts. Sole traders have unlimited liability - your house could be at risk. Companies create legal separation, though directors still have certain personal obligations under corporations law.
Planning to raise capital or bring investors?
Investment requires corporate structure. Investors want shares, not partnership interests. Companies offer clear ownership percentages, dividend distributions, and exit strategies. Consider different share classes if you want voting control while accepting investment. Sole traders and partnerships can't issue shares to investors.
Formation Process Timeline
Name Selection
Check availability through ASIC database. Reserve your chosen name for two months while completing other requirements. Consider trademark searches for brand protection.
Documentation
Prepare identification documents, registered office address, and initial director appointments. Companies need constitution or adopt replaceable rules under Corporations Act.
ASIC Registration
Submit application with required fees. Processing typically takes 2-3 business days for standard applications. Express service available for urgent formations at additional cost.
Post-Formation
Obtain ABN, register for GST if required, set up business accounts, and complete any industry-specific licensing requirements before commencing operations.
Common Formation Scenarios
Tech Startup with Growth Plans
Most tech ventures choose proprietary limited companies from day one. This structure accommodates future investment rounds, employee share schemes, and intellectual property protection. Consider appointing multiple directors early and establishing clear shareholder agreements.
Service-Based Freelancer
Professional services often start as sole traders for simplicity, then transition to companies as income grows. Consider professional indemnity insurance regardless of structure. Some professions require specific licensing that affects structure choice.
Family Business Succession
Family companies need careful shareholder agreements addressing succession, dispute resolution, and exit strategies. Consider different share classes for active vs passive family members. Trust structures sometimes complement corporate entities for tax and succession planning.
International Expansion
Australian companies provide solid foundations for international expansion. Consider tax treaty benefits, transfer pricing implications, and foreign subsidiary structures. Some industries have specific foreign ownership restrictions affecting structure design.