media release (15-113MR)

Easier information on business structures for small business owners

Published

Government moves to make life easier for Australian small business owners are producing results with the release of clear and accessible resources on business structures for owners and directors.

The Australian Taxation Office (ATO) sponsored Small Business Fix-it Squad has developed a suite of easy-to-access materials to help small business owners make informed decisions about their business structure and meet their legal responsibilities. Small Business Fix-it Squads are made up of small business owners working with federal, state and local government regulators to tackle the everyday issues of running a business.

They focus on examining problems and solutions from the perspective of small business. 

Small business owners looking to investigate the legal structure that best suits their business will find easy to understand information on business.gov.au.

Online tools, including comparison tables and resources, outline:

  • The key differences between operating as a sole trader and company
  • How to change business structure
  • Company director responsibilities

Small businesses that decide to set up a company business structure will find useful information on the responsibilities of their directors in the newly-developed ASIC's guide for small business directors.

'All company directors, regardless of the size of their business, need to understand their duties and legal obligations,' said ASIC Commissioner Greg Tanzer.

'ASIC's guide for small business directors provides an overview of directors' duties under the Corporations Act with a particular focus on small business directors.'

The guide covers:

  • what it means to be a company director
  • how to become a company director
  • directors' key responsibilities
  • directors' liabilities when things go wrong
  • how to resign as a director

The ATO, ASIC and the Department of Industry and Science are working together to tackle issues around sole trader and company business structures, and directors' responsibilities.

For further information on choosing the right structure for your business, visit www.business.gov.au/soletradertocompany.

Media enquiries: Contact ASIC Media Unit