Support Coordinator Business Structure: Sole Trader vs Company
Choosing a support coordinator business structure? Compare sole trader vs company on liability, tax and cost — with NDIS-specific risks and a decision aid.
Sole trader vs company at a glance
Sole trader: how it actually works
Company (Pty Ltd): how it actually works
Why liability matters more for support coordinators
The tax difference, without the myths
Partnerships and trusts: when they come up
How structure interacts with NDIS registration and reform
Worked example: when incorporating starts to pay off
What it costs to set up and run
Common mistakes coordinators make
How to decide
Frequently asked questions
Should a new support coordinator start as a sole trader or a company?
Most new coordinators start as a sole trader because it is free to set up, simple to run, and easy to change later. A company makes sense once you employ or subcontract others, sign leases or finance, or carry a caseload large enough that a claim could exceed your insurance. Confirm the tax side with an accountant, because Personal Services Income rules often cancel out a company's tax advantage for solo coordinators.
Does a company protect a support coordinator from being sued or from NDIS Commission action?
A company limits your liability for the company's debts, so your personal assets generally sit behind that wall. It does not protect you from NDIS Code of Conduct enforcement, which attaches to you as an individual delivering supports, and it does not cover your own negligence — that is what professional indemnity insurance is for. Structure and insurance work together; neither replaces the other.
Will a company save a support coordinator tax?
Not automatically. A base rate entity pays a flat company tax rate, but money drawn out as wages or dividends is taxed in your hands, and Personal Services Income rules can attribute company profit straight back to you — switching off the usual benefits. A company saves tax mainly when you retain profit for growth or can legitimately split income, which is uncommon for a one-person practice. Get advice before incorporating for tax reasons.
Can a sole trader register as an NDIS provider?
Yes. Both sole traders and companies can register with the NDIS Commission — you register as an individual or as an organisation. Structure and registration are separate decisions. Note that specialist support coordination (group 0132) still requires registration with audits, while mandatory registration for standard coordination (group 0106) was paused in December 2025.
Is it hard to switch from sole trader to company later?
No, but it is not instant. You register the company with ASIC, get a new ACN and company ABN, move contracts, banking and insurance across, and manage the tax and asset-transfer consequences of the change. Because there are capital gains and timing issues, plan the switch with an accountant rather than doing it mid-year, and time it around your reform and caseload triggers.