Steps when changing to a company
These steps are important for you to know when changing structures, however they are also applicable when you are starting a company.
Step 1 Decide if a company structure is the right structure for you
- Seek legal and professional advice before deciding on your business structure.
- Read our section on Changing from a sole trader to a company.
- Understand the differences between a sole trader and a company.
- Read What is a company? on the Australian Securities and Investment Commission (ASIC) website before starting a company.
- Find out more about choosing business structures on the Australian Tax Office (ATO) website.
Step 2 Understand your legal obligations as a company director/officer
- Know what you may be personally liable for as a sole trader vs. a company.
- Understand your obligations as a company director on the ASIC website.
Step 3 Apply for a company name/business name (if applicable)
- Read more about Australian Company Numbers (ACN) on the ASIC website.
- If you're changing your business structure, such as from a sole trader to company, you will need to cancel your existing ABN and reapply under your new structure. Read our page on Applying for an Australian Business Number (ABN).
- Read the Registering a business name page on the ASIC website.
- Visit our Registrations topic for more information on registration and licences for your business.
Step 4 Set up your company
- Visit the 201 Application form on the ASIC website to register as an Australian company.
Step 5 Run your company
- Read Reminders when running your company for key things to remember when you're up and running.