There are a number of different business structures you can choose including sole trader, partnership, trust or company.  It is advisable to seek legal or other professional advice in deciding the best structure for you.

The simplest and least expensive structure is sole trader.  However, the downside here is that any debt will be recoverable directly from your personal assets and there will be no limit to your liability. As a result you could lose your home.

A partnership between two or 20 people is also easy to establish and simple to administer. The downside is that each partner is jointly and severally liable for debts which means not only are you liable for your portion of debt but also for all the other debts incurred by other partners.

A trust – unit, discretionary or hybrid – can be useful when it comes to distributing assets and income but can be complex to administer.

Choosing a name

If you plan to use a business name other than your own then you should check whether the name you want is already registered. This can be done through checking the national names index at asic.gov.au or through the relevant Fair Trading department in your State or territory.  Both these services are free of charge.

You can also search the trademark database for a fee of $40 (http://www.ipaustralia.gov.au/trademarks/search_index.shtml#bass).

Registering a name will not give you any proprietorial right to that name – you need to register a trademark to enjoy that protection.

Registering your business

To register a business you need to use Form 201 issued by ASIC.  For a proprietary or public company, the cost to register is $400. If in the first instance, you just want to reserve a business name, the fee is $40.

If you are going to operate as a sole trader, you will register with the relevant department of fair trading in your state or territory. The cost varies. In NSW, for instance it is $142 to register.