A company can cost a little more to set up than a sole trader or partnership structure.  However, the benefits gained long term are more than compensative for the initial investment. 

You gain by having personal protection against your personal assets, you can save income tax and the business can be easily transferred and still appear to operate the same without you.

A company has directors, who are the managers or controllers.  They also have shareholders who are the owners of the business.  Directors are individual people, whilst shareholders can be non-individuals.   For small businesses they are usually the same or a related party.

Before creating the company up you will need to check with ASIC to confirm the company name is available.  The company will have its own TFN and ABN, register for GST (if needed) and for PAYG withholding to pay wages (as you will be an employee in the business).

You will open a new company bank account.  When you take money out of the company bank account for personal expenditure, there will be tax consequences.  It’s best to pay yourself a wage and use personal funds to pay for personal expenditure.  Avoid directors' drawings if you would like to avoid a nasty income tax shock.

There are many more features to having a company, feel free to reach out if you have questions.