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  • #988173
    TomL
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    Hi,

    I already have a business (lets call it “ABC pty ltd”) and am familiar with all that entails. However I have a new business idea I want to try and registering a business name (lets call it “XYZ Sales”) under my existing ABN seems ideal.

    Positives are not having to register a new company, can keep all the tax and accounting under the one ABN and still 1 tax return. Is this correct?

    Also, as far as banking goes I just need to show my bank my registered business name certificate I’ll get from ASIC and can then accept payment to “XYZ Sales” into my regular accounts for “ABC pty ltd”. Correct?

    However I can’t seem to find anywhere info on the following:

    When issuing tax invoices for “XYZ Sales” do I need to put on the invoice “ABC pty ltd Trading as XYZ Sales” or can I just use “XYZ Sales” as the name of the entity issuing the tax invoice?

    If the new business does really well I would probably want to have it under it’s own corporate structure eventually (may wish to sell it etc). Is it possible at some later date to form a separate entity “XYZ Sales Pty Ltd” with it’s own ABN and transfer the business name “XYZ Sales” to it?

    Thanks for any info!
    Tom

    #1165988
    Anonymous
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    Hi TomL,

    I’m not the right person to answer your questions, but did want to welcome you to Flying Solo.

    I hope the community here is able to help with the answers to your questions, or at the very least to point you in the right direction.

    Thanks for joining the forum :)
    Jayne

    #1165989
    al.giffard
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    Hi Tom,

    Welcome to FS!

    Yes, you’re right on the first two points; there will be just one tax return for the company, encompassing both businesses, and you can effectively ‘attach’ the new business name to your bank account, along with your company name.

    With invoices, you can issue them just in the registered business name (ie, just “XYZ Sales” is fine). You don’t need to have the company name on your invoices. FYI, the ATO guidelines are at: https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/ (note that your business name is enough to determine “the seller’s identity” as long as it’s a registered name).

    Finally, yes, you can certainly sell just the one business on its own rather than the whole company, at a later point in time. You can also ‘spin off’ the business to another separate company or structure later, although this is certainly something you should get advice on to minimise the tax implications.

    Hope that helps!

    Al.

    #1165990
    TomL
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    Jayne and Al, Thanks for the welcome!

    Al – Thanks for this info. It clears up a lot of my uncertainty.

    One more question comes to mind – with a BAS statement each quarter I’m assuming there is only one for the ABN, and not 1 per business name?

    #1165992
    al.giffard
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    Hi again Tom,

    Yes, that’s right. From the ATO’s perspective, the company is one single entity and so it only has the one set of reporting obligation, no matter how many separate businesses it conducts.

    Cheers,

    Al

    #1165993
    rob.aspirus
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    Hi Tom,

    Great advice here.

    Just one more thing, though. You still must register the business name “XYZ Sales”. Go to the ASIC website.

    Good luck with your business.

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