1. Any business starting in Australian would need to have an Australian Business Number (ABN). If this number is not taken, then all payments made to this business would be made after deducting 46.5% from the actual payment (Ato.gov.au, 2014). Hence it is a big disadvantage not to take this number.
2. It is advisable to register a business name after a suitable selection and liking to the owner. It must be registered with the Australian Securities and Commission (ASIC). The cost of registering a business name is $34 for a year and $78 for three years. Care must be taken to investigate that the business name is available for registration and not a duplicate of someone else’s business.
3. The details of the owner as a sole trader would be essential to be filled in the form while registering, and it will be confirmed once the receipt is being handed out by the ASIC.
4. The owner must decide the operating style of the business, which falls into categories of replaceable rules, its own constitution, or a combination of both. However, a proprietary company with single member as the owner need not have a formal set of rules for its internal governance (Asic.gov.au, 2014).
5. Sarah will also need to get a Tax File Number (TFN). All businesses require to get this number. Even though the person and the business is different, the tax filings will be considered as one along with the business. The TFN number for a sole trader will have to be used in the business as well as in personal dealings (Ato.gov.au, 2014).