Home – New Forums Starting your journey 2 Soletraders under one business name?

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  • #981950
    animalinbalance
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    Hi everyone!!
    I’m very new to the Australian business world (I’m from Holland) and I just started my small business. I’m registered as a sole trader and got a business name.
    I do pet/horse bodywork & acupuncture and would like to go to events soon to do work there and get my name out. I’ve recently bumped into a product that I would like to use and sell at these events, but because I can’t do everything alone I want to ask one of my best friends to help me out by coming with me to the events, or on the days that I can’t go out she can go out and use this product.

    Now is my question: Can my friend use my business name too when she register herself as a sole trader? I’ve registered the business under my name but like her to use it too as we will share the product and will get more customers when we are available (almost) every day of the week.
    I will no employ her, she will work for herself.

    Thanks heaps!!
    Aukje

    #1133862
    Past-Member
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    Sorry but that’s not possible. A sole trader has the business name delegated to that one person. You would have to be a partnership or company to share the business name.

    She could still sell under your name on your behalf – but she would have to bill you as her own name/trading name with her own ABN to avoid being an ’employee’ – but there are also rules on that.

    See ATO http://www.ato.gov.au/businesses/pathway.aspx?sid=42&pc=001/003/135

    See more at ASIC. http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Business%20names

    #1133863
    Anonymous
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    Hi Aukje,

    Welcome to Flying Solo :)

    That sounds like a great way to get your name out there with your target market. I hope that the info you pick up here gets you off to a good start.

    And thanks Karen for helping steer Aukje in the right direction. :)

    Best wishes,
    Jayne

    #1133864
    animalinbalance
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    Thanks Karen & Jayne!
    This info is very helpful!! :)

    #1133865
    Shelcom
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    Hi Aukje,

    Welcome to the forum and congratulations on starting your own business! How exciting :)

    Ok – to answer your question.

    Two separate people cannot apply for the same business name in Australia unless they apply as a partnership or joint venture.

    This is to protect you from a competitor taking your business name for example.

    There are two things you can do here

    1- You can employ your friend. This way she does not have to a partner in the business. She can still help, but the business and the income is assigned only to you. How you distribute your income is your business. As a sole trader, only you will be liable for the debts your business accrues.

    If you would like to split the responsibility of the business –

    2- you can change the structure of your business from Sole Trader to a Partnership. This can be done very easily. You’ll simply need to apply for what ASIC calls a cancel and transfer number by providing ASIC your business name’s ASIC Key. Once you have the transfer number you can apply under your new structure.
    When changing to a partnership there are also two ways to go about this (both options bring about the same result).
    1) to apply with the ATO for 1 single ABN as a partnership – so with both your names and details
    2) use your own individual ABN’s when registering the business as a partnership – it’s really applying for a business name as a joint venture.

    I hope this helps.
    If it’s still confusing or doesn’t answer your question, feel free to contact me for more help.

    Regards,
    Gosia

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