How Do I Choose the Right Business Structure and Name?
- johnry8
- Sep 23
- 3 min read
Starting a business is exciting, but making the right choices early on can save you a lot of time, money, and stress down the track. Two of the most important decisions you'll face are choosing the right business structure and picking a business name that reflects your brand.
Many business owners rush through this part or follow what others are doing without understanding the long-term impact. Getting these steps right helps you stay compliant, build trust with customers and set your business up for growth.
Let’s walk through what matters and how to get started with confidence.
1. Choose the Right Business Structure
The structure you choose affects your tax, legal responsibilities and how you manage your finances. Here are the most common options in Australia:
Sole Trader Best for individuals running a small business on their own. Simple to set up and manage, but offers no legal protection if something goes wrong, so house and personal assets could be on the line.
Partnership Ideal if two or more people want to run a business together. You share profits and responsibilities, but again offers no legal protection if something goes wrong, so house and personal assets could be on the line.
Company (Pty Ltd) A separate legal entity. It offers better protection for your personal assets and can be more tax effective as your business grows.
Trust Useful for asset protection and tax planning. Often used for family businesses or investment purposes. This is often used in combination with a company for best tax planning.
What we recommend For growing businesses or those looking to bring in partners or investors, a company & a trust structure usually provides the right mix of protection and flexibility, but each person’s situation is different so I highly recommend giving one of the Accountants at Rise Accountant a call before making the final decision.
2. Understand the Role of Directors and Shareholders
If you decide to register a company, you will need to nominate at least one director and at least one shareholder.
Director Responsible for running the company and meeting all legal obligations. This person makes the key decisions and signs off on important documents.
Shareholder Owns part or all the company and may receive dividends or returns if the business is profitable. A director can also be a shareholder.
Things to keep in mind Choose directors who are trustworthy and understand their responsibilities. If you are bringing in other shareholders, clearly define everyone’s roles and agreements in writing to avoid confusion later.
3. Check If Your Business Name Is Available
Your business name is a big part of your brand. It should be clear, professional, and easy to remember.
Steps to check availability
Visit the ASIC website to check if your preferred name is available
Make sure the domain name and social media handles are also free
Avoid names that are too like existing businesses to reduce the risk of legal issues
Pro tip Even if your legal name is different, you can register a trading name that better reflects your brand. Just be sure to register it officially so you can use it on your website, signage, and invoices.
4. Set Yourself Up for Success
Once your structure and name are sorted, make sure you have the following in place:
An ABN or ACN depending on your structure
A business bank account
Basic bookkeeping software
Have one of the Rise Accountants team members on your side
These small steps go a long way in helping your business run smoothly and grow with less stress.
Ready to choose the right structure and name for your business with confidence?