- Choose a business structure that best suits your business and situation. There are four main structures: sole trader, company, partnership, and a trust. Each structure has different legal and compliance obligations, so consider these before choosing one.
- Create a business plan for your new structure. It should include operational and strategic plans, as well as the goals and objectives of your business. The plan must be approved by all business owners and any important stakeholders.
- Assess the feasibility of your new business plan and then implement it. One key to success is your ability to adapt to changes during the implementation phase.
- Apply for a new Australian Business Number. You can find out more at the Australian Business Register.
- Contact IP Australia if you’re changing a registered trademarkor logo.
- Transfer your business namewith the Australian Securities & Investments Commission (ASIC).
- Contact ASIC if you want to form a company.
- Review or create a corporate governance structure or partnership agreement if you’re adding stakeholders to your business (eg from a sole trader to a company or partnership). It should list the terms and conditions, such as responsibilities, liabilities, decision making, and percentage of ownership.
- Find out how a change in business structurecan affect your tax obligations, eg how much tax you have to pay or how you report your tax.
- Find out what you need to transfer. For example, when you’re part of a partnership, the partnership isn’t a legal entity in itself. So if you want to change structures and continue running the business as a sole trader, you should transfer the business name to yourself and apply for a new ABN.
- Notify the relevant agencies in your state or territory about the changes to your business structure and registration details, as certain changes could affect your tax and other regulatory obligations.
- Seek professional advice before changing your business structure.
More information? To find out more, give us a call on 1300 023 782 or email firstname.lastname@example.org.
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