Are you ready to start your own business but don’t know where to start?

Launching my first business was scary AF. I remember it vividly, I was curled up in bed with my finger nervously hovering over the “publish” button. The second I pushed it, I slammed my laptop shut and threw it across the bed and spent 12 hours totally avoiding the internet 😂.

Taking the leap and going from hobby to business is scary, and I’m SO, so proud of you for doing it anyway!

The fact you’ve landed here on this page means you’re a responsible lil biz owner whose willing to invest time & energy into your business right from the beginning, shows that you’ve got the resilience and persistence needed to build a sustainable business that can support you.

Step One / Decide on a business name

You can run a business in Australia without any registrations, as long as it’s in your legal name – for example my business could only be called “Lecinda Ward” which is my legal name. If you want to call your business anything else (such as “Elle Ward Creative Studio”) then you need to register your business name with ASIC. Whether you call your business after your first name, or create a studio name, is up to you.

How to choose? Here are some things to consider:

naming a business after yourself is often the easiest approach, it’s an easy way to personalise your business especially if you have a unique name. But if you have a really common name, like John Smith, you could get lost in a sea of other “John Smith Photography” businesses in a Google Search.
choosing a studio name is a great option if you have plans to (eventually) hire other photographers to work for you.

Personally I always knew that I wanted to call my business after myself, as I knew that I’d have a ridiculously hard time coming up with a unique business name and that it was also very (very) likely that I’d want to change it in 12 months time because it didn’t “fit” anymore. This is the same reason I haven’t yet committed to a tattoo, coz I know in 6 months I’ll have changed my mind 😅.

PRO TIP → Before you register, check the following…
add_circle There’s no trademark for your business name, especially important if you have chosen a studio name (you can check this here https://www.ipaustralia.gov.au/);
add_circle The business name is available;
add_circle The domain names are available;
add_circle Your social media tags/handles are available.

Step Two / Decide if You Need an Australian Business Number (ABN)

It is compulsory to apply for an ABN in order to register your business name.

What is an ABN? It’s a unique string of numbers issued to you by the Australian Business Register (a branch of the Australian Tax Office) which:

confirms you are a legitimate business to your clients and other businesses;
allows you to register for and claim GST credits;
get an Australian domain name (ending in .au);
avoid tax penalties if you are invoicing other businesses (they are required to withhold 46.5% from their payments to you (for tax purposes) when you don’t provide an ABN);
open up a specific bank account in the name of your business.

Step Three / Decide on Your Business Structure

Before you register your business name and/or apply for an ABN, you’ll need to decide on a business structure. You can register a variety of different types of businesses, as either a:

Sole trader;
Partnership;
Company; or
Trust.

For people who are just starting a small creative business where you are the only person working in it; then it is likely that running a business as a sole trader will be sufficient for you. However, this might be different based on your financial and personal circumstances, so if you aren’t sure then you should absolutely seek independent financial and legal advice before registering.

You can get an overview of the differences between registering as a sole trader vs a company over here.

While there are limited tax advantages as a sole trader; you have far less reporting requirements and you just get to attach your business financial issues to your personal tax return - simples! Make sure to keep a record of all your financial documents for the last 5 years.

A sole trader is the easiest and simplest form of business ownership. You own and retain control of all aspects of the business, and the only thing you need to do is pay your business name registration fees every year.
The biggest disadvantage is that if something goes wrong (and you don’t have insurance/your insurance won’t cover your situation) is that you are personally liable for any damages (if you get sued, you have to pay personally and if you can’t pay personally you have to sell all your assets or declare bankruptcy) which means your personal assets are at risk.
If you have a lot of assets (houses/investment properties etc) registered in your name, then you should absolutely consult a qualified accountant for individual financial advice before you register your business, to determine if it will be better for you to register under another type of business.

Step Four / Register Your Business Name + Apply for An ABN

Once you have decided on your business name, and your business structure, you can head over to the Business Registration Service.

Here you can register your business name (which will ask you to nominate your business structure) and help you apply for an ABN. It’s a relatively easy process, you’ll need to enter your personal details, upload some identification documents, and provide the details of your proposed business.

You can choose whether to register your business name for one or three years and pay a small fee (which is payable again at the end of your one/three year registration to keep your business name active).

Your application will be processed (the turnaround time has always been really quick for me).

Once you’ve got your ABN, you are ready to rock and roll!

PRO TIP - make sure you include your ABN on your invoicing software/templates.

Over and out!

If you found this helpful, I’d love to hear from you as this inspires me to keep creating and sharing content like this with you.

You would also be helping me reach more people by sharing this image on social media, and with your friends.

Elle ⚡

|| DISCLAIMER ||

Before relying on the information on this website, seek independent advice from a qualified lawyer or accountant. The information contained in this website is general information only and is provided purely for your convenience. The information has been provided without taking into consideration the personal circumstances of any user, and the information is not to substitute professional advice. Any reliance you place on such information is therefore strictly at your own risk.