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June 15, 2020 at 12:45 pm #1000219Michal11Member
- Total posts: 2
At the end of 2019 I set up my first business – imported goods online store for event/expo industry. I got my ABN, registered a business name, started building a webpage with an online store, started negotiating with suppliers… and COVID-19 hit. So currently my business is not fully born but dead already.
To pay bills I started subcontracting here and there as a handyman, but using my online store ABN and business name (it looks bit weird the online store name on the handyman work invoice, but so far none of my clients have problem with it)
May I have any problems with ATO (or other) if my invoices are for handyman services not for an online store stuff?
As I started getting more and more jobs as a handyman, I’m considering to set up a new business name for handyman services only and also keeping the first online business.
Can I register the new business name now, or it’s better to wait until EOFY and start on July? (I may need to register for GST)
Having two businesses, one noGST and the second one GST registered, I’m going to use use my personal vehicle, my mobile phone, internet, part of the place where I live etc. to run both of them. What is the best practice to have all of this under control?
Thanks.June 15, 2020 at 11:34 pm #1223426Paul – FS ConciergeModerator
- Total posts: 3,126
Hi and welcome to Flying Solo Michal.
Ouch! That must have hurt to have had your dreams put on hold.
Thanks for sharing your backstory.
The best advice I can give is to keep records around business and personal use of vehicles, and other items where personal and business use occurs.
Getting Accountant’s advice about your structure is really important at this stage because a small mistake now can have a big mistake later.
I am so glad you have found a way to produce an income in these trying times.
Cheers.June 18, 2020 at 3:25 am #1223427bb1Participant
Michal11, post: 270012, member: 116525 wrote:Having two businesses, one noGST and the second one GST registered,
- Total posts: 4,472
Ok, time to go and see your friendly helpful accountant. I thought that if one is registered for GST the other has to be as well, but that may depend on your business structure (sole trader, company, etc). Ignore what I say, because I have no idea, but based on my structure, both business’s are effectively GST registered, as it is the one ABN, even though one is under the limit, but it’s a combined income. time to talk to an accountant,June 19, 2020 at 6:16 am #1223428JacquiPryorMember
- Total posts: 2,344
Echoing the above – accountant will be best to advise based on your own personal circumstances the right structure and whether better to register a new entity 1 July or before.
At the moment as a sole trader you have one ABN, which would be linked to both online shop business name and handyman business name. Effectively YOU are the legal entity and those business names are simply aliases for you who is running the business by that same ABN. If you want one business to register for GST and not the other, you may need to set up one or the other (or potentially both subject to your accountant’s advice) as a Pty Ltd or similar so that it is then a separate entity with separate ABN and could register for GST independently of your sole trader ABN and business.
Another thing to check when you do speak to your account is whether you have to display the Shop business name on handyman invoices. It may be enough to have your name and ABN on those invoices- so, for the moment you are effectively carrying on that business by your own name and not a business name. Doesn’t solve the GST question but might solve the ‘looks funny on handyman invoices’ part.
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