Do you need to set up a business?
If you're hosting experiences and earning income from them, you're running a business - even if it doesn't feel that way yet. The good news is that setting up as a business in New Zealand is straightforward, and you have options for how to structure it.
This guide is for general information only. It is not legal or financial advice. Your situation may be different. Talk to a lawyer, accountant, or business adviser if you're unsure about the right structure for you.
The simplest option: sole trader
Most Good Finds hosts operate as sole traders. This means you're running the business as an individual - there's no separate legal entity, no registration required, and no complex setup.
As a sole trader you:
- Use your personal IRD number for business income
- Report your business income and expenses in your individual tax return (IR3)
- Are personally liable for any debts or legal claims against the business
For most hosts starting out, sole trader is the right structure. It's simple, low-cost to maintain, and easy to change later if your business grows.
You can operate under a trading name as a sole trader without any formal registration. If you want to trade as "Wild Kitchen NZ" rather than under your own name, you can simply start doing that - though registering the name as a trademark is an option if you want protection.
The next step: a limited liability company
A company is a separate legal entity. It limits your personal liability - if the company is sued or goes into debt, your personal assets are generally protected.
Setting up a company makes sense if:
- You're generating significant income and want to separate business and personal finances
- You have a business partner
- You're taking on staff or contractors
- You want to present a more formal business structure to partners or clients
Registering a company costs $116.75 on the Companies Office website (companies-register.companiesoffice.govt.nz) and takes about 20 minutes online.
A company requires ongoing administration - annual returns, a registered office address, and director obligations. Factor in the cost of an accountant to help with this.
A business bank account
Whether you're a sole trader or company, separating your business and personal finances makes everything easier.
- It makes tax returns simpler - your business income and expenses are in one place
- It makes it easier to see how your business is actually performing
- It looks more professional to guests and suppliers
Most New Zealand banks offer business accounts. Some have no monthly fees for small businesses.
Even if you're a sole trader, open a separate account and use it only for hosting income and expenses. It takes 30 minutes to set up and will save you hours at tax time.
ACC - Accident Compensation Corporation
If you earn self-employment income in New Zealand, ACC will invoice you for levies. These fund the accident compensation scheme - if you're injured and can't work, ACC may cover a portion of your lost earnings.
As a self-employed person, you pay two types of levy:
- Working safer levy - a small flat levy
- Work levy - based on your earnings and the type of work you do
You'll receive your first ACC invoice after you file your first tax return showing self-employment income. The amount is based on your earnings from the previous year.
Your first year's ACC levy is based on a minimum earnings threshold. Once IRD shares your actual earnings with ACC, your levy will be updated. Don't be surprised by a second invoice.
Keeping records
Good records make tax time easier and protect you if Inland Revenue asks questions.
Keep records of:
- All income received from bookings
- All business expenses (materials, insurance, vehicle costs, equipment, professional fees)
- Receipts and invoices for expenses you're claiming
The general rule is to keep records for at least seven years.
A simple spreadsheet tracking income and expenses by month is enough to get started. Many small business owners move to accounting software (Xero, MYOB, or similar) once their income grows.
Getting help
New Zealand has several free resources for small business owners:
- Business.govt.nz - guides on setting up, employing staff, and business structures
- Inland Revenue (ird.govt.nz) - tax registration, GST, and filing
- Citizens Advice Bureau - free general advice
- Chamber of Commerce - regional business networks and advisers
Requirements change, and your situation is unique. This guide reflects general information as of early 2025. For advice specific to your business, talk to a qualified accountant or business adviser.