Hi there. Starting a business can be exciting, but there are important legal issues you need to consider to minimise risks and protect your venture.

The first thing to consider is what type of business structure you want. A business may operate as a sole trader, company, partnership or trust. Each of these business structures has advantages and disadvantages. Although we do not know the full details of your business plan, from the information you provided, it sounds like a company may be an appropriate option for you. Running your business as a company means it exists as a separate legal entity that can incur debt, sue and be sued. This would limit your personal liability as a shareholder (i.e. owner) of the company. Setup costs are relatively low but, once you create a company, there are ongoing rules and regulations that your company must follow.

Regardless of the type of business structure you choose, you will need to register your business for a Tax File Number and Australian Business Number. You should also consider registering a business name (also known as a trading name) – a valuable asset as it helps differentiate your business from competitors – and a website domain name.

You should also consider registering a trade mark. A trade mark is a word, phrase, shape, logo, etc, that is used to distinguish goods and services of one trader from those of another. If you choose to register your trade mark, you will get exclusive use of that trade mark throughout Australia for an initial period of 10 years. Others will be prevented from trading with your business’ trade mark. Trade marks can become very valuable assets, especially as the reputation of a business grows.

It is also important that your business is taxed correctly. The taxes you need to register for depend on the type of business you are running. It sounds like you will be buying or selling goods and services (namely a membership service to a business network), which means you will need to register for GST if the business has an expected annual turnover of $75,000 or more. Other taxes will apply if you pay staff salaries or wages.

Other factors you may need to consider in setting up your business are insurance, record keeping and accounting systems, and setting up a governance structure (i.e. policies for the day to day management and operation of the business).