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  • #968392
    beckles
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    Hi

    I have a PTY LTD setup (let’s say it’s called XYZ Pty Ltd). I currently have a business name registered for trading purposes – Corporate Classroom. I am considering starting a second business that is totally different to what I do under the Corporate Classroom flag. Can I register a second business name and have it associated with the Pty Ltd company?

    Thanks

    #1032930
    sleepyoz
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    Hi Rebecca

    Yes you can – I noticed you are in queensland -the company can register the business name you wish to trade under – I have provided a link below to the form on the Qld Dept of Fair Trading site

    http://www.fairtrading.qld.gov.au/Forms/Register_business_name_form.pdf

    #1032931
    beckles
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    Thanks – not sure if I was totally clear but the existing trading name I have registered is associated with the PTY LTD, so I’m wanting to have 2 different trading names (for unrelated business) but both registered to the same company.

    I have a copy of that form (but thanks for the link) but read it to mean I can replace an existing trading name.

    I think I’ll just bite the bullet and give their office a call.

    Thanks

    Beck

    #1032932
    Farid Zaki
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    Hi Rebecca,

    An easier way to think of it is that a company is similar to a natural person who can have 2 businesses or 2 jobs.

    A company is allowed to have different activities and you can have the different activities registered under different business names and link them all to the company ABN, GST & PAYG registrations.

    In other words you will need to do BAS, financials and tax returns for the company’s total income / expenses from all sources and business names linked to the company.

    #1032933
    Tinkie
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    Thank you for this post, this is exactly what I was looking for.

    And how would you register 2 business names? One for national (register once, instead of registering in each state )and one for your state?

    Thanks in advance.

    #1032934
    Rhys
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    Hi Rebecca,

    No, not that easy unfortunately. The business names registration is state by state. So if you want to register one or both the names across Australia you do have to do it separatly in each state.

    This is going to change, there is a new national regime on the way for business names registration but not for another couple of years so won’t help you right now!

    Cheers, Rhys

    #1032935
    Tinkie
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    Thank you

    #1032936
    DS_BVS
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    Hi

    As advised by Farid you can register more than one name. It is worth noting that Office of Fair trading rego only covers your State whereas your company name is registered nationally via the ASIC.

    Just remember from a management viewpoint to establish different bank accounts for each business so you can account for each separately and then combined. This will prevent one operation subsidizing the other without you being fully aware of it.

    cheers

    #1032937
    Rhys
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    NO, no, no there are good reasons for setting up multiple bank accounts, but measuring the relative performance of different operations is NOT one of them.

    Seriously, what are you going to do when you pay the rent – pay it 40/60 from the 2 accounts? Or if one business grows relative to the other, now pay the rent 30/70? How about that parking expense – split that? Or your new laptop? Which bank account do each of these come from? And what about paying the ATO for your BAS – 2 cheques rather than 1? And wages (or drawings)? The list goes on and on.

    Two bank accounts bad (very, very bad) because the cost it adds to you (not in bank fees which is minor, but in terms of your time, in terms of making a mess of your accounts) FAR outweighs the value of the information you get.

    However I do agree it is important to measure the performance of each business – and you can do this really easily using any of a number of accounting packages. Those that read my posts will not be surprised to see me advocate Xero – just set up tracking codes to identify revenue and cost of goods sold by business stream (then expense “shared” expenses unallocated). You can generate great reports that show you the performance of each business stream. If you want to see some examples of Xero reports or other aspects of Xero please take a look at my website.

    In the interest of fairness I have to mention you can also do this with MYOB (using job codes or categories), or with Quickbboks, or with lots of other accounting solutions. I just happen to think Xero is in most cases the best option!

    And even if you don’t run “two separate businesses” using tracking codes can still be a really good tool. Measure performance by rep, or by customer “group” (whether than means private sector versus government, or by state, or by . . . . well whatever other groups you have in your business really).

    But just remember you do need to measure, if you can’t measure it you can’t control it.

    Cheers, Rhys

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