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  • #991217
    bb1
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    Ok my turn to ask the dumb question!!

    I currently have my business name registered and attached to my ABN

    i now want to register a second business name which I know will go against my current ABN which is all good.

    But as I wont be trading with the new business name for at least 12 months (prepatory phase), but want to reserve the name and purchase the domains for it. Will I need to do any formal business reporting (financial or otherwise) for that entity while it is not earning or spending money, yes there is registration costs and domain name costs, but they are minor and happy not to claim them at this stage.

    And yes I can ask my accountant but they off sunning themselves in some luxurious foreign country (not Vanuatu thankfully), I have discussed some things with them, but forgot this one and really want to start securig the name and domains.

    #1180506
    LucasArthur
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    Hey Bert,

    If using the same ABN i assume ( i know i shouldnt) that it is one entity that will ultimately own both registered business names? Be it sole trader or company, just one of them is going to be the legal owner…

    This being the case, if i read correctly, all reporting is fed through the one legal entity meaning you can start claiming now for all expenses under that head entity i would assume. And from a tax perspective, i would believe that the ATO will expect you to provide total amounts as one entity (under one ABN as suggested by you) rather than submitting as business A and business B.

    Again, no accountant here and i could be completely wrong in this thought so i would wait for an expert to come along.. :)

    Only variation on this is if they are 2 separate legal entities meaning either 2 companies or 2 separate sole traders (not both under your name as a sole trader) which would automatically require to separate ABN’s.

    Shoot, i hope that makes sense.. i havent had a coffee yet.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1180507
    bb1
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    Yeah Jason both sole traders, both under the one ABN

    Your assumptions are what I beliee to be the case. From what I can gather but just want it confirmed by a guru, there is no seperate reporting required, so effectively the second one can sit there dormant for 12 months without me having to do much at all. From what my accountant originally said I just claim it and run it under the one yearly return, but will seperate it in the profit and loss so if I ever want to split it off I can. And yes I believe I can already claim te setup costs against my ABN, i will just setup seperate codes in MYOB so I know which entity incurred the costs.

    just want to really confirm that if I setup the name and domains now, i can virtually forget about them. Although knowing me i will have it going much quicker.

    Why do accountants get to go on holidays. Oh thats right I will in a couple of months so shouldnt complain.

    #1180508
    LucasArthur
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    Hey Bert,

    ok here is my take on it.

    You (being sole trader) are the owner, you can have multiple registered business names with same ABN and report the aggregate totals as ONE SUBMITTAL as required for the ATO (dependant on how you set up your GST that is – quarterly or yearly).

    Sounds like you need to separate the thought in your mind, let me explain.

    You are creating 2 businesses, this i understand, and as such you personally wish to separate reporting and costings and claims etc etc and this is the part you need to be clear about as this is totally different to how the tax man sees this paradigm.

    Meaning, the ATO sees this as just one business with multiple names.. Nothing else, and as such expects/requests all information to be submitted under the legal entity (You and your ABN) that owns the said business/es.

    Re record keeping: You will need to have just one MYOB – although potentially just create different revenue and expense accounts, if you wish, to keep track of the accounts.. and to run separate reports etc… May get a little hard to split things to be completely functional due to it being one owner with one ABN, although for the most part the separation of information this way should serve your purpose.

    So, as the legal entity behind the enterprise you can buy anything relevant to the business and park it, claim it, use it, or whatever even if it takes you a decade to use the domains you have bought them on reserve to benefit your business (or as its split business with one entity the entities benefit) and to potential preclude anyone else taking said name/domain etc as an ‘investment’.

    Oh boy, this is too much for me.. i cant think any more.. signing off, sorry if message is incomplete and sure an ‘expert’ will contribute something relevant other than my preamble :p

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1180509
    bb1
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    HarryLuke Logistics, post: 210522 wrote:
    Hey Bert,

    ok here is my take on it.

    You (being sole trader) are the owner, you can have multiple registered business names with same ABN and report the aggregate totals as ONE SUBMITTAL as required for the ATO (dependant on how you set up your GST that is – quarterly or yearly).

    Sounds like you need to separate the thought in your mind, let me explain.

    You are creating 2 businesses, this i understand, and as such you personally wish to separate reporting and costings and claims etc etc and this is the part you need to be clear about as this is totally different to how the tax man sees this paradigm.

    Meaning, the ATO sees this as just one business with multiple names.. Nothing else, and as such expects/requests all information to be submitted under the legal entity (You and your ABN) that owns the said business/es.

    Re record keeping: You will need to have just one MYOB – although potentially just create different revenue and expense accounts, if you wish, to keep track of the accounts.. and to run separate reports etc… May get a little hard to split things to be completely functional due to it being one owner with one ABN, although for the most part the separation of information this way should serve your purpose.

    So, as the legal entity behind the enterprise you can buy anything relevant to the business and park it, claim it, use it, or whatever even if it takes you a decade to use the domains you have bought them on reserve to benefit your business (or as its split business with one entity the entities benefit) and to potential preclude anyone else taking said name/domain etc as an ‘investment’.

    Oh boy, this is too much for me.. i cant think any more.. signing off, sorry if message is incomplete and sure an ‘expert’ will contribute something relevant other than my preamble :p

    Jason

    LOL Jason,

    you explained it exactly how I understood it, but I said it very badly. Thats why my posts are normally very short or I would confuse the heck out of everyone even more than i do already. And its not even Wednesday. LOL

    #1180510
    LucasArthur
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    ps Berty bert bert… i cant believe that i go out of my way to help you articulate your own thoughts and you cant even click the ‘like’ for my post :( LOL

    pps.. cant wait to here what the new idea is too :) be it today or 12 months from now

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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