Sole Trader
Services
Many individuals who operate a business in Australia commence as a sole trader and trade under their own Australian Business Number (ABN). A sole trader structure may be suitable for individuals carrying on a business activity in their personal capacity, depending on their circumstances and commercial objectives.
Eligibility requirements apply when applying for an ABN, and the Australian Taxation Office (ATO) provides guidance on whether an individual or entity is entitled to an ABN based on the nature of the activity being undertaken.
You may require an ABN in circumstances such as:
- Commencing or carrying on a business or enterprise
- Registering a business name
- Issuing invoices to customers or clients
- Registering for Goods and Services Tax (GST), where required
- Acting as a trustee of a trust
- Operating certain non-profit or charitable activities
Who May Need an ABN?
You may require an ABN if you operate a business or earn business income as a:
- Sole trader
- Tradesperson or contractor
- Freelancer or consultant
- Ride-share or delivery driver
- Online business operator
- Small business owner
Sole Trader – Key Considerations
A sole trader structure may offer:
- Lower setup and administration costs
- Simpler business administration requirements
- Flexibility in operating a business
- Ability to employ staff, where required
A sole trader structure may also involve considerations such as:
- Personal responsibility for business debts and obligations
- Limited separation between business and personal assets
- Tax and business considerations that vary depending on circumstances
Unsure if You Need GST Registration?
Registering an ABN does not automatically mean GST registration is required. GST obligations depend on your circumstances, business activity and turnover requirements.
We can assist you in understanding whether GST registration may be required for your business.
How We Can Assist
At NEXO Accounting, we can assist with:
- ABN registration
- Business name registration
- GST registration (where required)
- Assistance in understanding business structure considerations based on your circumstances
- ATO registrations relevant to your business setup
Starting a New Business?
If you are commencing a new business, we can assist with the registration process and help you understand the practical steps involved in setting up your business correctly from the beginning.
Whether you are starting a new business or require assistance understanding your options, we can help you understand the registration process and practical considerations involved.
If you would like to discuss your circumstances or arrange a consultation, please contact us on 0405 735 555 or email us at rs@nexoaccounting.com.au and we will be happy to assist you.