Are You Ready To Move From A Sole Trader To A Company? Guide For Brisbane Sole Traders
- Sep 23, 2025
- 3 min read
Updated: 4 days ago
As your business grows, the structure you started with may no longer be the best fit. Many Brisbane business owners begin as sole traders because it is relatively simple and inexpensive to set up. As revenue, profit, staff and business responsibilities increase, it may be worth considering whether a company structure is more appropriate.
Moving from a sole trader to a company can provide greater separation between your personal and business affairs, create different tax planning opportunities and provide a structure that may better support future business growth.
But many business owners are caught off guard by the cost of making the switch.
Changing your business structure involves more than simply registering a company with ASIC. There are costs, tax considerations, registrations and ongoing responsibilities to consider before making the change.
Here is a simple breakdown of what is expected when setting up a company structure in Queensland.
Book in an advisory meeting with your accountant
Before making the change, meet with your accountant to review your current business structure, financial position and future plans. They can help you understand the tax implications, ongoing obligations and whether moving from a sole trader to a company is the right option for your business.
Setup and register the Company
A new company needs to be registered with ASIC and will receive its own Australian Company Number (ACN). You will also need to determine the company name, directors, shareholders, share structure and how the company will be governed.
At Rise Accountants, our company setup service is approximately $1,375 including GST. This includes the ASIC registration fee, company constitution documents and relevant tax registration setup.
Business Name Registration
If the company will trade under a name different from its registered company name, a business name will generally need to be registered or transferred to the new company.
Approximate cost: $47 for one year or $108 for three years You can skip this if you are happy to trade using your registered company name.
Ongoing Company Costs
Running a company involves more responsibilities than operating as a sole trader.
Annual ASIC review fee: from 1st July 2026 it is $342
Ongoing Bookkeeping, Financial Statements, Tax Return, BAS and other compliance: Costs may increase depending on the size and complexity of your business, reach out to our team to give you a quote.
Move Your Existing Business Across
If you are changing from a sole trader to a company, there may be additional steps involved in moving your existing business activities to the new entity. This can include updating bank accounts, accounting software, invoices, contracts, insurance and other business records.
Depending on your circumstances, business assets may also need to be transferred to the company and there may be tax implications to consider. Getting advice before making these changes can help ensure the transition is handled correctly.
How Rise Accountants Can Help
Our team of accountants can assist you through the process of moving from a sole trader to a company, including:
Reviewing your current business structure and whether a company is suitable
Providing tax and business structure advice before you make the change
Setting up and registering your new company
Applying for the required ABN, TFN, GST and PAYG registrations
Reviewing any tax implications associated with the change
Providing ongoing accounting, tax planning and business advisory support
Frequently Asked Questions
When should I change from a sole trader to a company?
There is no set income or revenue amount that means you need to change to a company. It may be worth reviewing your structure when your business becomes more profitable, you employ staff, take on greater business risk or have plans for further growth.
What happens to my business name when I change to a company?
If you want to continue trading under your existing business name, you may need to transfer the business name registration so it is associated with the new company and its ABN.
Is a company better for tax than a sole trader?
Not always. Companies and sole traders are taxed differently, and the most appropriate structure will depend on your profits, personal circumstances and how money is taken from the business. This is something worth discussing with your accountant before changing structures.