Home Forums Starting your journey Transition from sole to pty

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  • #992722
    riccardo1888
    Member
    • Total posts: 18

    Hi

    I have a question that I can not really find on the forums.

    My current sole trader business has a registered trading name. I need to set up a pty and keep the same trading name but different company name.

    Now I know this can be done but do I only use the abn from my pty and only use my registered sole trader name for a trade name ?

    Also is it as simple as setting up both and starting or does the sole name need to be registered to the company ?

    My accountant can set it all up for $1200 but I see online set ups for $550 and tempted to do it that way.

    Thanks in advance to any replies.

    Richard

    #1187753
    Burgo
    Member
    • Total posts: 2,099

    Go with your accountant, they have experience and knowledge to do exactly what you want

    #1187754
    Alex (LegalVision)
    Member
    • Total posts: 52

    Hi Riccardo,

    An accountant or a lawyer would be your best bet for incorporating your business – we can assist you with incorporating your company and ABN, GST and PAYG Registration. Once your company is successfully incorporated, we can also provide you with a guide and checklist about the next steps. At the very least you can compare our quote with the one your accountant has given you.

    In general, you will need a new ABN. You may conduct any number of business activities under a single ABN as long as they correspond to the same business structure. If you are changing your business from a sole trade to an incorporated entity, then you will need a new ABN. Before you do this you’ll also need to get an ACN (Australian Company Number).

    You can use your sole trader name or come up with a new one – as long as it is unique/ isn’t in use. If you can, stick with the same business name you’ve been trading under as a sole trader, as it will ensure continuity in your branding.

    Hope this is helpful and good luck!

    #1187755
    riccardo1888
    Member
    • Total posts: 18
    Alex (LegalVision), post: 220064, member: 43834 wrote:
    Hi Riccardo,

    An accountant or a lawyer would be your best bet for incorporating your business – we can assist you with incorporating your company and ABN, GST and PAYG Registration. Once your company is successfully incorporated, we can also provide you with a guide and checklist about the next steps. At the very least you can compare our quote with the one your accountant has given you.

    In general, you will need a new ABN. You may conduct any number of business activities under a single ABN as long as they correspond to the same business structure. If you are changing your business from a sole trade to an incorporated entity, then you will need a new ABN. Before you do this you’ll also need to get an ACN (Australian Company Number).

    You can use your sole trader name or come up with a new one – as long as it is unique/ isn’t in use. If you can, stick with the same business name you’ve been trading under as a sole trader, as it will ensure continuity in your branding.

    Hope this is helpful and good luck!

    Thank you for both your replies.

    Alex if I send my email address can you send a quote for your services please ?

    boltonsautocare@hotmail.com

    Many thanks

    Richard

    #1187756
    Sophie517
    Member
    • Total posts: 17

    Current Trading Name
    Jump onto ASIC, log into your business name control panel with AUSKEY and release it for transfer. You will be sent a series of numbers as the release key. Key needs to be used within a defined period, otherwise it will expire, and you will have to release it again.

    Register New Company
    When asked for name or trading names, you will enter the trading name you want to set up under this company. It will ask if you own the name or if you have the release key. Enter the release key. The transfer of name will happen along with the Company registration.

    Or you can go to an accountant.

    Understand the financial/tax implications and differences between a sole trader vs a company. You have benefits of tax free threshold as well as lower marginal tax rates (until you are earning above the accumulative tax threshold which make Company tax more suitable). Whereas a company is tax from the 1st dollar it makes. Of course Company has many benefits as well. I would still advocate speaking with an accountant to see whether you are going to achieve what you intend to achieve.

    Cheers.

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