From side hustle to PTY LTD: when to change your structure (and your software)
A clear checklist for when growth justifies a company structure.
Bottom line: Move to a company structure when your income rises, your risk grows, or you need a tax rate cap. Your software should not force a switch before your structure does. Keep records clean now and scale when the numbers justify it.
Signals it is time to upgrade
- Consistent profits and higher tax brackets.
- Clients require a company entity.
- Growing liability risk or assets to protect.
What changes when you register a company
- Separate tax return and compliance obligations.
- ASIC annual review requirements.
- Clear separation between personal and business funds.
Keep your records upgrade-ready
If your data is organised now, the transition is easy later. That is the advantage of a structured system over a spreadsheet.
About the author
Written by the Self Managed team based on experience supporting micro-business growth.
Last updated
January 2026