You may consider a sole-director proprietary company structure when starting or growing your business. A company is a separate legal entity, unlike a sole trader or a partnership structure. This means the company has the same rights as a natural person and can incur debt, sue and be sued.
The company’s owners (the shareholders) can limit their personal liability and are generally not liable for company debts. A company is a complex business structure, with higher set-up and administrative costs because of additional reporting requirements.
You need to register a company with the Australian Securities and Investments Commission (ASIC). Company officers and directors must comply with legal obligations under the Corporations Act 2001.