Choosing the right way to organise your business is a big decision that affects how it operates across various areas, including legal and financial matters. The structure you choose will affect who makes important decisions, who shares in the profits, who is responsible for any debts, how taxes are handled, and what kind of paperwork you need to manage. It also plays a role in how your business connects with the community and reflects cultural values.
Making this decision early on helps lay a strong foundation for your business, reduces risks, and avoids expensive changes later.
The way a business is set up affects much more than just following the rules. It plays a big role in:
Choosing the right business setup can help people participate in the economy while preserving cultural values, leading to business growth and benefits for the community.
If you are unsure which business structure is the right choice for your business, you can use the Business Structure workflow below or the Work out your business registrations tool provided by Business.gov.au.
The Work Out Your Business Registrations tool is designed to help you determine which business structure might work best for you and which registrations you need once you choose that structure. If you haven’t decided on a business structure yet, the tool will ask you a series of simple questions about things like ownership, decision-making, risks, and how you plan to run your business. It helps you compare different options such as being a sole trader, forming a partnership, starting a company, setting up a trust, or creating an Aboriginal and Torres Strait Islander corporation. Based on your answers, the tool provides personalised information on the best structures for your situation and the registrations typically required, making it easier for you to make informed decisions before you proceed with officially setting up your business.