can you start trading and then register business name?

[alison_onyx]

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Hi All,

I’m a sole trader and currently have 2 micro business names registered under my abn.
This website is a wonderful resource and i feel i have only barely scratched the surface with all the info on here.

I started a 3rd micro business about 6 mths ago, really only to test the waters and see if it was viable, which it was and i have been using it however havent as yet had to issue receipts. However i didnt actually register the business name at the time and am only doing that now. (i know, poor business practice).

So my query is: if the business name registration date is april 2015, when i go to my accountant for tax time, is it an issue that i would have income and expenses for business #3 from November 2014?

Thanks in advance.

[ThexArm]

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Although you are 3 business names, all of them are under one ABN. So, as long as you can establish that expenses were genuine business expenses you won’t have any issues at the accountant.

[Colin-S]

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But is there a limit to what you can put under one ABN? Do you have to specify a type of trade and stick to that? For example if you register as a shoe outlet, can you put an internet printing business under the same ABN?

[Greg_M]

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Colin-S, post: 212919, member: 65455 wrote:

But is there a limit to what you can put under one ABN? Do you have to specify a type of trade and stick to that? For example if you register as a shoe outlet, can you put an internet printing business under the same ABN?

No accountant, but I’m pretty sure you can have as many as you like under one ABN.

Over the years I’ve had unrelated sources of income all under the one ABN.

It’s fairly common to register a different business name to define what you’re doing (using one ABN) then combine sources for tax liability etc.

[Colin-S]

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OK, thanks Greg.

It would all be a lot less complex without tax

[Greg_M]

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Colin-S, post: 212926, member: 65455 wrote:

It would all be a lot less complex without tax

Agreed.

I was in my accountants once, and noticed a shelf full of very thick volumes on Australian tax law … ever since then I decided to just let them work it out.

[Design Point]

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Hi Guys,

You may have many business names under the same ABN provided they all operate under the same business structure. If they are different then you will need to apply for a new ABN for these new businesses.

Cheers,

Adrian

[Colin-S]

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G’Day Adrian.

So for a sole trader, there’s really only a single business structure, right? As an internet marketer with a single ABN, I could start selling bananas or tree felling services?

If that’s right, at what point would that change? If I hire 5 contractors to help fell the trees, does that count as a different business structure? Or do you mean if I hire a manager to look after that side it then becomes a different business structure?

Hmm, dont think I could work in the ATO!!!

[Author]

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