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  • #990759
    zengmaster
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    Hi All,

    I am new here, nice to meet everyone.

    I have a quick question, If business structure changes from Soletrader to Company, can the same ABN be used or will a new ABN and ACN be required.

    Generally speaking how much more expensive is it to maintain a company registration in comparison to soletrader in NSW on an annual basis.

    Much thanks,

    #1178473
    Anonymous
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    I can’t answer your question directly, but I do know that when you register your company, that an ACN is automatically assigned at that time. The ACN plus 2 check digits then become the ABN. So I am guessing that you would not easily be able to “transfer” an ABN from sole trader to company. One thought, the new company may buy the sole trader business and trade using that ABN as a subsidiary of the company.

    #1178474
    NickKaro
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    zengmaster, post: 207852 wrote:
    Hi All,

    I am new here, nice to meet everyone.

    I have a quick question, If business structure changes from Soletrader to Company, can the same ABN be used or will a new ABN and ACN be required.

    Generally speaking how much more expensive is it to maintain a company registration in comparison to soletrader in NSW on an annual basis.

    Much thanks,

    Hi zengmaster

    The answer is no, you will need a new ABN. When you incorporate the company you will be provided with an ACN.

    Generally speaking, other than the “capital” start-up costs of registration, not much more – annual ASIC cost is around $245, tax compliance and financial account preparation won’t cost you much more than what you are already paying for a business tax return, the only thing that changes in that regard (which may increase the cost marginally) is the actual tax return which is prepared.

    Regards
    Nick

    #1178475
    ThexArm
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    Sole trader ABN is attached to the person who owns that business. As such it is not transferable.

    A company is a separate entity and it gets its own ABN.

    A company is not restricted to a state. But, you would have a registered office in one place.

    A company needs to have an annual review every year (as name suggests) and also need to file a statement with asic. Find more information at this link – http://asic.gov.au/for-business/running-a-company/annual-statements/annual-statements-and-late-fees/

    Sole trader doesn’t have this requirement however need to maintain its business name registration by renewing it once in a year or in 3 years. It’s much cheaper than company annual review fees.

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