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  • #978761
    tstorms
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    I offer web/software development services and I am operating as a sole trader. The business is under my ABN registered in my name (Entity Name), but I also have the trading name as Express Developments (which I would like to use in the future).

    I had a look at the sticky post for starting a business – is there any advantage/requirement to register for a Business Name (http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Registering%20a%20business%20name)? Or am I ok to operate as Express Developments and just use my ABN number?

    #1109348
    victorng
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    You need to register a business name.

    If you use any name other than your actual name, you are required to register a business name.

    #1109349
    tstorms
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    victorng, post: 121627 wrote:
    You need to register a business name.

    If you use any name other than your actual name, you are required to register a business name.

    What does a trading name represent?

    #1109350
    JacquiPryor
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    A business name is often also called a trading name.. but, under old legislation it was in very certain circumstances possible to have a ‘trading name’ that wasn’t also registered as a business name.

    Further the ABN Lookup database in Australia would list a ‘trading name’ against an ABN so people could put the business operator with the trading name together as one.

    Under the new system – since 28 May – it’s a blanket rule – as Victor said – if you use anything other than your own name you must register it as a business name. So, yes, it’s a requirement.

    Further, the ABN Lookup will cease displaying trading names against people’s ABNs around this time next year and will only display properly registered business names. As a sole trader, even when you formally register Express Developments as a business name, it will associate to the ABN that you already have. You will be asked for that ABN when filing the business name application, and ultimately it will link to the ABN Lookup records.

    Hope this helps clarify :)

    #1109351
    tstorms
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    JacquiPryor, post: 121633 wrote:
    A business name is often also called a trading name.. but, under old legislation it was in very certain circumstances possible to have a ‘trading name’ that wasn’t also registered as a business name.

    Further the ABN Lookup database in Australia would list a ‘trading name’ against an ABN so people could put the business operator with the trading name together as one.

    Under the new system – since 28 May – it’s a blanket rule – as Victor said – if you use anything other than your own name you must register it as a business name. So, yes, it’s a requirement.

    Further, the ABN Lookup will cease displaying trading names against people’s ABNs around this time next year and will only display properly registered business names. As a sole trader, even when you formally register Express Developments as a business name, it will associate to the ABN that you already have. You will be asked for that ABN when filing the business name application, and ultimately it will link to the ABN Lookup records.

    Hope this helps clarify :)

    Thanks for that!

    #1109352
    Astrid
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    Hi Jacqui

    Do I understand that right that I can register more than one business name with one ABN?

    Let’s say, I’m a sole trader, have registered a business “Sally Miller Kitchen Innovations”, can I then still register another trading name/business e.g. ‘Hot Cupcakes” under the same ABN or does it mean that it needs it’s own ABN?

    Thanks,
    Astrid

    #1109353
    Past-Member
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    Hi Astrid – yes. Sole traders have one ABN but can register additional trading names.
    I have three although I use one. They are related to domains I have previously traded as. You also have to advise the tax department that you trade in other names and your bank so that any payments made out to the other names can be deposited without problem. You show the bank your Business Name Registration Certificate to have the extra trading name added to your business account.

    Cheers.

    .

    #1109354
    JacquiPryor
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    Hi Astrid,

    Not much to add really – “ditto” to what Karen said :)

    As a sole trader you are always the ‘legal entity’ behind a business name and ultimately the ABN belongs to the entity, which can trade by a number of different names if it wishes.

    If, however, you registered each name as a company (rather than business name) then each would have its own ABN, as each would be its own legal entity.

    #1109355
    Astrid
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    Great, thanks to both of you for the info!

    Cheers.

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