Sole Traders Make the Leap as Growth Triggers Move to Company Structures

New directors using Honcho to register their company.

Miralda Ishkhanian, Chief Operating Officer of Honcho

Digital platforms help small business owners navigate critical changes

A company structure gives them credibility, limited liability, and a stronger foundation for future growth - and we're here to make sure your big move is a smart one.”

— Miralda Ishkhanian

SYDNEY, NEW SOUTH WALES , AUSTRALIA, August 8, 2025 /EINPresswire.com/ -- A growing wave of Australian entrepreneurs across Australia are hitting key growth milestones - and discovering that operating as a sole trader may no longer be enough.

From tradies to allied health providers and beyond, more self-employed Australians are formalising their businesses by registering as proprietary limited (Pty Ltd) companies. In doing so, they’re gaining legal protection, tax advantages, and a stronger platform for future expansion.

“We see a lot of sole traders and consultants hitting growth milestones and realising it’s time to operate on a more formal footing,” said Miralda Ishkhanian, Chief Operating Officer of Honcho, Australia’s leading digital platform for business registration and compliance. “A company structure gives them credibility, limited liability, and a stronger foundation for future growth - and we're here to make sure your big move is a smart one.”

Honcho, which has helped more than 800,000 Australians start and structure businesses since 2008, is seeing a steady rise in sole traders making the switch. Common motivators include reaching new income levels, expanding teams, or securing larger contracts that require a formal company structure.

For many, registering a company is a key factor. Unlike sole traders, company directors are not personally responsible for all debts and liabilities of the business - making incorporation an important step in protecting personal assets like homes, savings, or vehicles.

“When you grow, the risks grow with you,” Ishkhanian explained. “Forming a company gives business owners peace of mind that they’re protected if things don’t go to plan.”

Tax efficiency is another major incentive. Companies pay a lower corporate tax rate than individuals in the top tax bracket, allowing business owners to retain more earnings in the business or structure their income more effectively.

“For successful sole traders, it’s not just about saving on tax - it’s about having more control over how they manage their finances,” said Ishkhanian.
Establishing a company can also provide a powerful credibility boost, particularly when dealing with corporate clients, financial institutions, or government bodies.

“Having ‘Pty Ltd’ on your business name adds weight and legitimacy,” Ishkhanian said. “It signals to the market that you’re serious, stable, and set up for long-term success.”

To simplify the process, Honcho offers an all-in-one online platform that helps users register a company, assign shares, stay compliant with ASIC, and set up tax registrations. The service also supports tasks such as transferring business names, applying for GST, registering a trademark, securing business insurance and registered office services.

“Without the right support, incorporating can feel overwhelming,” Ishkhanian noted. “We make sure nothing gets missed - so you can focus on running your business, not chasing paperwork.”

Honcho’s guided tools are designed for sole traders, consultants, and growing service providers who need a clear, compliant path forward as their operations expand.

“We work with driven, talented people who are ready to level up,” Ishkhanian said. “Our role is to remove the friction so they can make their move with confidence - and keep building momentum.”

Morgan Banks
Honcho
+61 1300 587 203
email us here

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