A sole trader is the simplest and most common business structure in Australia. Even though it’s easy to start, there are still several legal steps every owner must complete to operate lawfully.

1. Australian Business Number (ABN)

An ABN is a unique 11-digit number that identifies your business to the government and the public.

It’s obtained for free from the Australian Business Register (abr.gov.au).

Required for tax purposes, invoicing, and to register for Goods and Services Tax (GST) if turnover exceeds $75,000.

Example: A self-employed carpenter in Perth needs an ABN to issue invoices and claim business expenses.

2. Business Name Registration

If you trade under a name that isn’t your personal name (e.g. “Perth Plaster Pros” instead of “Sam Lee”), you must register the business name with ASIC (Australian Securities and Investments Commission).

This ensures no one else uses the same name.

You can check availability and register at asic.gov.au.

3. Business Registration

As a sole trader, you don’t need to register as a separate company — the business is legally the same as you. However, you must:

• Register for taxes (ABN, TFN, GST if applicable).
• Obtain local licences or permits depending on your industry (e.g. food handling, building trade).
4. Tax File Number (TFN)

Sole traders use their personal TFN for business income. All income and expenses are reported in the individual tax return each year through the Australian Taxation Office (ATO).

5. Insurance and Superannuation

While not strictly a “registration,” WA sole traders are strongly encouraged to have:

• Public liability insurance and income protection.
• Super contributions to a personal super fund (since employers aren’t paying it for you).

Local Example: A self-employed plumber in Joondalup registers an ABN and business name, reports income using his personal TFN, and obtains the necessary plumbing licence through the WA Department of Mines, Industry Regulation and Safety.

A partnership is when two or more people (up to 20) own and operate a business together. In Western Australia, partnerships are common in small professional firms — like local accountants, medical clinics, or trades. Each partner shares profits, losses, and responsibilities, so the legal setup must be clear and properly documented.

1. Australian Business Number (ABN)

The partnership itself must apply for its own ABN through the Australian Business Register. This ABN is used for invoices, tax, and GST if the annual turnover exceeds $75,000.

2. Business Name Registration

If the partnership trades under a name other than the partners’ names (e.g. “Bright Sparks Electrical” instead of “Jones & Lee”), it must be registered with ASIC. All partners are listed as owners when registering the name.

3. Business Registration and the Partnership Act 1895 (WA)

In WA, partnerships are governed by the Partnership Act 1895 (WA). This law sets out the rights, duties, and liabilities of partners, including how profits are shared and how the partnership can end. While you don’t register under this Act, you must follow its legal framework.

4. Partnership Agreement

Although not legally required, a written partnership agreement is highly recommended. It outlines:

• Each partner’s role, capital contribution, and share of profits.
• How decisions are made and disputes are resolved.
• What happens if a partner leaves, retires, or dies.

Example: A Perth café co-owned by two friends uses a written partnership agreement to avoid confusion about who manages daily operations.

5. Tax File Number (TFN)

The partnership must have its own TFN, separate from the partners’ individual ones. The partnership lodges an annual tax return to show total income and expenses. Profits or losses are then divided among partners and reported on each partner’s personal tax return.

6. Other Obligations
• GST registration if turnover is above $75,000.
• Industry licences or permits depending on the business type (e.g. builders, café owners, or accountants).
• Insurance (public liability, workers’ compensation) is strongly advised.

Local Example: A Fremantle graphic design partnership registers a business name and ABN, follows the Partnership Act 1895 (WA), and uses a written partnership agreement to manage profit-sharing and creative responsibilities.