Hi @Ouelleal,
This is a common question when a business starts to grow, and the right option depends on how you intend to work together and how income and risk should be shared.
Firstly, you don’t need to wait to register a business name until the structure is final. If you change structure later, you update the ABN details and link the business name to the new ABN. Business names are updated through ASIC.
A partnership is a different business structure to a sole trader:
- you and the other person share profits and losses
- both partners are jointly responsible for business debts and obligations
- the partnership lodges a partnership tax return, but doesn’t pay tax itself
- each partner declares their share of income in their own tax return.
This isn’t an ‘add‑on' to your ABN – changing to a partnership means registering a new ABN for the partnership.
Keeping your structure as a sole trader and employing someone means:
- you remain the sole owner
- you pay them wages or salary
- you’re responsible for PAYG withholding, super guarantee, and other employment obligations
- the employee doesn’t share in ownership, profits or losses.
Your ABN and structure don’t change when you employ someone as a sole trader.
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