Do You Need a Company to Become an NDIS Provider?

When you’re starting out as an NDIS provider, one of the first questions you’ll face is: “Should I set up as a sole trader or a company?”

It’s not a small decision. The structure you choose affects everything from your liability and tax obligations to how professional your business looks to clients and partners.

At Aspire Lawyers, we’ve helped many new NDIS providers make this decision. Here’s what you need to know.

Sole Trader: Simple but Exposed

Operating as a sole trader is straightforward:

• Easy and cheap to set up.

• You keep control over everything.

• Less ongoing compliance.

But there are drawbacks:

• Personal liability: if something goes wrong, your personal assets are at risk.

• It may limit your ability to grow and take on staff.

• Some clients and partners see companies as more credible.

Best for: People testing the waters, keeping things small, and who are comfortable with personal liability.

Company: Protection and Growth Potential

A company is a separate legal entity. This means:

• Your personal liability is limited.

• It’s easier to bring in staff, partners, or investors.

• Many government contracts and larger clients prefer dealing with companies.

But:

• It costs more to set up.

• There’s more compliance and reporting.

• You need to keep finances strictly separated.

Best for: Providers aiming to grow, take on employees, or build long-term operations.

Partnership: A Middle Ground

If you’re starting the business with someone else, a partnership might seem attractive. But without a clear partnership agreement, disputes can quickly turn into legal headaches.

So, Which One Is Right for You?

The choice depends on your:

• Risk profile — are you comfortable with personal liability?

• Growth goals — do you want to expand beyond yourself?

• Resources — can you manage the extra compliance of a company?

How Aspire Lawyers Can Help

We work with NDIS providers at every stage, from sole traders taking their first steps to companies expanding across Australia. Our advice is practical, tailored, and focused on your goals.

If you are thinking about starting your NDIS business? Book a consultation below today and we’ll help you choose the right path for you.