Can you use the same ABN for another business?
In this modern century, entrepreneurs have expanded their vision to multiple businesses. In Australia, there are numerous businesses run by a single entrepreneur and the idea seems really soothing. However, one main question that arises among newbie businessmen who are establishing multiple businesses in Australia is — Can you use the same ABN for another business? Or, do you need to apply for a different Australian Business Number for a different business?
To begin with, the answer to this question is quite complex. Join ABN Master’s handy guide on ABN for more than one business in Australia — as a company and as a sole trader.
Let’s begin:
Can you use the same ABN for another business as a company?
There is a major difference between a company and a business. For example, a company can run multiple businesses. However, a business cannot run multiple companies. Therefore, this situation arises two conditions on the subject of ABN.
● Condition of Yes: If you are running more than one business under a company’s name — then you can run both businesses or more than one business using a single ABN.
● Condition of No: If you are running more than one business under more than one company’s name — then you will need to apply for ABN for both businesses separately.
Now, you may ask which option is better. ABN Master’s in-depth research on this subject concludes that : a businessman must try to run more than one business with separate ABNs. It is because ABN acts as an identification number or 11 digit identification code for business.
Therefore, if you use single ABN for all businesses, your entire revenue will be in count for calculation of taxes payable. In this case, the risk of loss is much more than the other case. Apart from this, by using the same ABN, you are officially linking both your businesses together, therefore, the loses, profits, debts, and assets of both businesses will be linked forever in the eyes of business law.
Can I use the same ABN for another business as a sole trader?
As a sole trader, you do not need to apply for ABN separately for another business. It is because sole traders more often hold personal Tax File Number, a.k.a TFN. Therefore, sole trader’s businesses are often identified by TFN and ABN. Hence, one TFN only holds one ABN.
To apply for ABN for multiple businesses, visit our website — ABN Master for quick responses and swift doorstep delivery of ABN at your business or local address.
