Home Forums Starting your journey Can I have two ABNs?

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  • #1000457
    MaxTl
    Member
    • Total posts: 10

    Hi Flyingsoloer,

    Maybe this question has been asked before, but I still don’t quite understand the rules of ABN.

    I am in this situation, I registered an ACN, when I went through the process to apply an ABN for this new company, there were several options,

    Change in business structure
    You need to reactivate an ABN because the legal structure of your business has changed. For example, from a partnership to a sole trader.

    Re-commenced business (different business structure)
    You need to reactivate an ABN because you have restarted a business in a different business structure.

    New business in Australia
    You need a new ABN because you have set up, or are about to set up, a new business and have never had an ABN using the same business structure in Australia.

    Not sure what option should I choose? Before registering an ACN, I operate this micro business under my personal ABN as a sole trader.

    By the way, I am the sole director of this new registered ACN, my question is if I can keep the existing sole trader ABN and apply a new ABN for this ACN?

    Any input is appreciated.

    #1224450
    bengtan
    Member
    • Total posts: 12

    (Disclaimer: IANAL)

    Generally, companies have their own ABN. A company is a separate entity so it should have it’s own ABN.

    Since it’s a new company, I’d suggest choosing ‘New business in Australia’.

    If you continue the activities for the ‘micro business’ as part of your ‘sole trader’ activities, then you should be using your sole trader/personal ABN.

    If the activities are conducted under the new company, then use the company’s ABN.

    #1224451
    MaxTl
    Member
    • Total posts: 10
    bengtan, post: 271388, member: 14149 wrote:
    (Disclaimer: IANAL)

    Generally, companies have their own ABN. A company is a separate entity so it should have it’s own ABN.

    Since it’s a new company, I’d suggest choosing ‘New business in Australia’.

    If you continue the activities for the ‘micro business’ as part of your ‘sole trader’ activities, then you should be using your sole trader/personal ABN.

    If the activities are conducted under the new company, then use the company’s ABN.
    Thanks heaps bengtan, does that mean I can have them both– the personal sole trader ABN and the company ABN —at the same time?

    #1224452
    bengtan
    Member
    • Total posts: 12

    Yes, and if you have 10 companies, they each have their own ABN.

    #1224453
    Paul – FS Concierge
    Moderator
    • Total posts: 3,121

    Hi and welcome to Flying Solo MaxTi.

    I am glad to have you here, posting and interacting.

    All the best.

    Paul

    #1224454
    MaxTl
    Member
    • Total posts: 10
    bengtan, post: 271392, member: 14149 wrote:
    Yes, and if you have 10 companies, they each have their own ABN.
    Thank you very much
    #1224455
    alkavivaaustralia
    Member
    • Total posts: 1

    The question here is the cost of maintaining separate businesses, accountants, BAS, and your time etc for the tax savings. At a smaller stage I would value your time more than the small tax saving.

    #1224456
    Biz Keeping
    Participant
    • Total posts: 9

    You and your company are separate entities, so yes, you can have separate ABNs. Yes, you’d have to do separate bookkeeping and BASs if they’re both registered for GST. If you’re not using your personal ABN right now though, and you are registered for GST with your personal ABN, I’d cancel the GST registration until you wanted to use it Edson to save on reporting. Good luck with your new company!

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