Question 1

What business structure should I use in Australia?

Accepted Answer

The four main structures are sole trader, partnership, company (Pty Ltd), and trust. Sole trader is the simplest — just register an ABN and you're trading, but you're personally liable for business debts. A Pty Ltd company offers liability protection and can be more tax-effective above ~$100,000 profit, but involves ASIC registration, annual fees, and more complex accounting. Most small businesses start as sole traders and restructure once profitable.

Question 2

How much money do I need to start a business?

Accepted Answer

It depends entirely on the type of business. A service-based sole trader might start for under $1,000 (ABN, basic software, website). A product-based business or bricks-and-mortar operation might need $50,000–$250,000. The key figure is your 'runway' — how many months of living expenses plus business costs you can cover before the business needs to be profitable. The Savings Goal Calculator can help you work out this target.

Question 3

Do I need to register for GST when I start a business?

Accepted Answer

You must register for GST once your annual turnover reaches $75,000. Below that threshold, registration is optional. If you register voluntarily, you can claim GST credits on business expenses — useful if you have significant costs early on. Most product-based businesses register from the start; many service businesses wait until they approach the threshold.

Question 4

How do I pay myself from a business?

Accepted Answer

As a sole trader, your business income is your personal income — you pay income tax on the profit, not a salary. As a company, you can pay yourself a salary (which is a deductible business expense) or take dividends from profits. The most tax-efficient approach depends on your total income — an accountant who specialises in small business can model this for your situation in year one.

Question 5

What are the biggest financial mistakes new business owners make?

Accepted Answer

The most common are: underpricing (not factoring in tax, super, holidays, and non-billable time), undercapitalising (starting without enough runway to survive the first 6–12 months), mixing business and personal finances (always use a separate business bank account), and not putting aside tax as they go. The Freelance Rate Calculator prevents the first mistake by building all of these factors into your minimum rate.

🚀Starting a Business

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