Choosing a business structure

Registration is granted to a legal entity, not to a person's good intentions. The name on your application, your ABN, your insurance and your documents all need to describe the same entity.

The common options

• Sole trader — you trade under your own ABN. It is the simplest and cheapest to set up, and it is how many small NDIS providers start. You are personally responsible for the business's debts and obligations.
• Company — a separate legal entity with directors. It costs more to set up and maintain, and brings director duties and reporting, but it separates your personal assets from the business.
• Partnership — two or more people in business together, sharing responsibility.
• Trust, incorporated association or other structure — used less often by very small providers, and usually set up with professional advice.

What this means for registration

• Your key personnel — the people who own, direct or make significant decisions — are assessed as part of registration and generally need worker screening clearances.
• Your insurance must be in the name of the entity that is registering.
• Your documents should name the legal entity, with any trading name shown as well.

Changing structure later

Providers do change structure, usually from sole trader to company as they grow. Be aware that this creates a different legal entity, which has consequences for a registration that was granted to the old one. Plan the change deliberately, check the current requirements with the NDIS Quality and Safeguards Commission, and get accounting or legal advice before you make it.

What we can and cannot help with

We record your structure so your documents are accurate and your roadmap fits. We are not accountants or lawyers, and choosing a structure has tax and liability consequences. If you are unsure which structure suits you, speak with an accountant before you apply.