Home – New Forums Other discussions Can I run 2 unrelated businesses from one ABN?

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  • #986173
    Leski
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    Hi everyone, I’m a new user and would love to pick your brain – All comments welcome.

    I set up an ABN and Family Trust – currently run an online retail store from home under this structure in W.A. I lodge monthly BAS’s.

    My husband and I have recently purchased a farm in VIC, and want to start earning income from primary production and other farming related stuff. So, the two businesses will be unrelated.

    My query – can the one ABN service different (unrelated) income streams. Would I combine the income/expenditure on the one BAS? I do my bookwork and tax lodgment myself. But now it’s getting complicated.

    Thanks In advance.

    Leski.

    #1156629
    nighttax
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    Leski, post: 180542 wrote:
    Hi everyone, I’m a new user and would love to pick your brain – All comments welcome.

    I set up an ABN and Family Trust – currently run an online retail store from home under this structure in W.A. I lodge monthly BAS’s.

    My husband and I have recently purchased a farm in VIC, and want to start earning income from primary production and other farming related stuff. So, the two businesses will be unrelated. Did you discuss with your accountant before you bought the farm? Does the trust own the farm or is it in your personal names?

    My query – can the one ABN service different (unrelated) income streams. Would I combine the income/expenditure on the one BAS? I do my bookwork and tax lodgment myself. But now it’s getting complicated. Technically a trust can run as many businesses as the trustee likes. But you must realise that trust would own the primary production business if you run it under the trusts ABN. Yes you would combine the income and expenses on the one BAS and on the one trust tax return. You can run separate income and expense streams in your bookkeeping and even show the different income and expenses in the financials but they would still all be on the one set of trust financials.

    Thanks In advance.

    Leski.

    Regards
    Evan

    #1156630
    Leski
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    Thanks Evan,
    The farm is in individual names. We don’t have an accountant. My online business is easy so I just set a trust up myself and lodge bas’s online, and tax return via paper (the ato must hate me).
    As the farm is in individual names, but the loan is solely in my hubbys name – technically, I am a stay at home mum. Thankyou for bringing that to my attention.
    Might be easier for him to obtain his own ABN/and trading name if nec. and register as a primary producer.

    #1156631
    nighttax
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    Hi Leski

    I recommend having a meeting with an accountant before you decide whether to use, trust, partnership or sole trader. There are benefits and pitfalls for all types. A detailed discussion of your current position and clear scope of your future business plans would be the best way to decide what is best for you. I know it costs money but it is a case of spend some to possibly save plenty both tax wise and asset protection wise.

    regards
    Evan

    #1156632
    dian11
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    This is very useful for me :) Thank you :)

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