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  • #969923
    erinna
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    Hi everyone,

    I just thought I would post what I found out today.

    I registered my business name, Erinna Imagery, about two years ago. On the forms, it asks for your ABN. I assumed that the two would then be linked.

    Over the past two years, the opportunity has not arisen that Ive had to confirm this. However, today, as I was filling in my new business bank account forms, it asks for a Business Search extract, so I figured I should just check all the details are correct.

    I searched the ABR website and it came up showing my ABN, and my Entity Name (being me, as Im a sole trader), however, no where does it show my Business Name/Trading Name.

    I checked the ASIC website and the WA Department of Commerce site for my Business Name – all good and dandy.

    After ringing the ATO Business line, I was informed its two separate entities and they are not automatically linked. You need to inform the ATO of your ABN’s new trading name.

    Very simple, and something I realised was straight forward, but I thought I would just let everyone know. :)

    #1041569
    Anonymous
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    • Total posts: 11,464
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    Hi Erinna,
    It’s an area many people find complex, so thanks for posting your summary!

    Have a great weekend,
    Jayne

    #1041570
    Anonymous
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    I’m really glad I saw this as it applies to me also.

    From what I can tell, the form to fill out is this one:

    http://www.basicbookkeepers.com.au/files/ato_change_of_registration_details_form.pdf

    Cheers,

    Sandy

    #1041571
    horse033
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    Does the ABN (sole trader) number need to be linked to your own registered business name????? for any reason at all??

    i have a seperate ABN # and a seperate businees name same as erinna an sandy b

    thanks

    #1041572
    Canex Graphic Designs
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    • Total posts: 222
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    I’m sure some legal pro or accountant will come along and clarify this… hopefully!

    From what I understand, you register your business name with the state in which your business operates, and you register your ABN as an Australia-wide registration.

    If you have registered a business name and you are a sole trader, then your ABN should be registered under your personal name, with the Trading Name being the name that you have registered your business as (eg: Nelson Caneleo Trading As Canex Graphic Designs).

    When registering your business name with your state authority, you will need to provide your ABN. This does not mean the ATO/ABR are updated to show your business name as the trading name.

    Hope this helps and hope it makes sense…

    #1041573
    Beautician
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    • Total posts: 180
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    Does the ABN (sole trader) number need to be linked to your own registered business name????? for any reason at all??

    No. Unless you request it. My present business name is not linked to an ABN. I simply don’t require it at present. And it’s all above board.

    #1041574
    Past-Member
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    The ABN does need to be connected to you because of tax. All income regarding that business name must be related to an ABN and tax name. In terms of invoices, an ABN must be quoted on all invoices and purchase orders.

    You can have more than one trading name linked to your name with the same ABN.

    See more at http://www.ato.gov.au business section.

    .

    #1041575
    Beautician
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    • Total posts: 180
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    The ABN does need to be connected to you because of tax. All income regarding that business name must be related to an ABN and tax name. In terms of invoices, an ABN must be quoted on all invoices and purchase orders.

    If you have the ABN for that purpose. If you are not using an ABN for that particular business – which is legal (eg. you don’t have to have an ABN to run a business) – then you don’t have to connect it. You also don’t have to quote your ABN on all invoices and purchase orders unless you are registered for the GST. And that’s a different issue entirely.

    Apologies if this wasn’t made clear in my earlier post.

    As I am not an accountant, I am merely regurgitating the advice given to me by my CPA prior to setting up my business.

    #1041576
    Past-Member
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    I understand that ABN requirements are confusing, but, according to the ATO and also this government reference, anyone who operates a business requires an ABN (Australian Business Number), which is connected to your name.

    If you do not have an ABN then other businesses are required to withdraw PAYG tax on the government’s behalf of 46.5%.

    The ABN is a unique 11 digit identifying number that businesses use when dealing with other businesses. For example, you generally need to put your ABN on your invoices, or other documents relating to sales. If you don’t, other businesses may withhold 46.5% from any payment to you for tax purposes.

    You also need an ABN in certain dealings with the Australian Taxation Office (ATO) and other areas of government.
    Registering for an ABN is not compulsory, but you will need one to register for the GST. Your ABN allows you to:
    -facilitate a single Business Activity Statement
    -confirm your business identity to others when ordering and invoicing
    -avoid PAYG tax on payments you receive
    -claim GST credits
    -claim energy grants credits
    -purchase an Australian domain name.

    So, in order to avoid tax complications, it’s always best to register the ABN in the beginning. And legally, one must have an ABN, in order to purchase a domain name.

    http://www.business.gov.au/BusinessTopics/Registrationandlicences/Registerfortaxation/Pages/RegisterforanAustralianBusinessNumber(ABN).aspx

    Even though I’m not an accountant, I receive weekly news from our accountant, and more. It seems we really must have an ABN.
    .

    #1041577
    Beautician
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    • Total posts: 180
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    And legally, one must have an ABN, in order to purchase a domain name.

    Wrong again, Karen. You don’t :)

    anyone who operates a business requires an ABN (Australian Business Number), which is connected to your name.

    Nope, they don’t :)

    While you’ve gone off on a tangent by listing the advantages of having an ABN which I don’t argue with, you don’t appear to be reading what has actually been written on other posts.

    Please note I am not here to argue the points of what an ABN is, how to get one and why we should have one. In Australia, you can lawfully run a business without an ABN.

    Even though I’m not an accountant, I receive weekly news from our accountant, and more. It seems we really must have an ABN.

    Well obviously not enough advice or the correct advice if what you’ve written above is anything to go by. But it’s a good thing you have as you’ve demonstrated why anyone considering running a business should employ the services of an accountant because often well meaning respondents can get it wrong.

    No offence, but I’m sticking with my CPA rather than an illustrator on this one ;)

    #1041578
    Robert Gerrish
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    • Total posts: 1,274
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    Ouch! A tiny bit harsh on our wonderful Karen, but I know she has a thick skin and as always is sharing what she knows openly and generously.

    With all these (mildly) conflicting facts flying around it’s a wonder even a CPA can stay abreast of requirements.

    I have no doubt we’ll lure one such person into this conversation very shortly so that illustrators, beauticians and all others can have the definitive answer.

    Until then, thank you to all for imparting your knowledge in your own unique and candid manner!

    Robert

    #1041579
    Beautician
    Member
    • Total posts: 180
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    Robert and Karen, I am sorry if I came across as harsh. That’s really not my nature. It’s just that when something is flat out wrong I just say so and I realise that there’s a way to go about this.

    I do apologise if I was out of line.

    Mea culpa, mea maxima culpa!

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