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Help with ABN application

Discussion in 'Small Business' started by ellejay, 19th Apr, 2016.

  1. ellejay

    ellejay Well-Known Member

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    I've got a business idea and need some help with planning and costing etc, but a guy from Austrade says I need an ABN for him to be able to help me move forward. He's been really helpful so far in a general sense, so I'd like to be able to work with him. I've started to fill out the online ABN application but I'm stuck re 2 things:

    1) the entity- sole trader or company. Can anyone give me brief overview of options re this? It would be just me initially but I may pull in hubby and others to help later on.

    2) the nature of the business. There's a drop down menu where you need to select what the business will do. I'm still at the planning stage though and have a couple of different options. Is it easy to change the nature of the business after getting the ABN from selling one product to another, for example?
     
  2. Bran

    Bran Well-Known Member

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    Ha.

    I gave up on this and paid someone to navigate that painful site.

    Good luck :)
     
  3. ellejay

    ellejay Well-Known Member

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    Ah, I did see some companies will do it for a fee. Now I know why! Have you got a recommendation?
     
  4. Nick Valsamis

    Nick Valsamis Well-Known Member

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  5. ellejay

    ellejay Well-Known Member

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    Thanks Nick. Is it easy to change the nature of the business if costings lead to a change of plan?

    Is it a reasonable idea to start as sole trader and move to a company if needed later on?
     
  6. Nick Valsamis

    Nick Valsamis Well-Known Member

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    I'm not sure of the process to change from sole trader to company. Would need some input from an accountant.

    But considering that it is fast and almost 0 cost to run as a sole trader it is reasonable.
    Depending on what sort of business you will run, you may need company structure for limited liability.
     
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  7. York

    York Finance Broker Business Member

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    I would seek professional help with this. A lot depends on what you're planning to do. A sole trader and a company are two very different structures each with their pros and cons. If this is a serious business idea, I wouldn't be hasty.

    The type of business may be able to be changed later on, but the structure (Sole trader/company) may not be as easy. Speak to your accountant about your plans and they can advise the most suitable structure for your needs.
     
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  8. Kinnon Bell

    Kinnon Bell Finance Broker

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    Having just changed a business structure for one business and as a result, an ABN, I'd strongly recommend getting it right from the start. Even it it takes more time or costs a bit extra, IMO, we'll worth it. Having to go through all the rigmorale did my head in and it's still not sorted yet.
     
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  9. ellejay

    ellejay Well-Known Member

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    That's great advice, thanks!
     
  10. Kinnon Bell

    Kinnon Bell Finance Broker

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    No worries. To expand - can't transfer an ABN so have to apply for new one in a new entity, transfer biz name (which involves canceling and re-registering), updating insurances, banking accounts (needed to open new ones in our case), depending on the biz and merchant terminals and how clients pay then advising them of new banking details, invoicing, quoting and probably other stuff I haven't realised yet and probably only will when something goes wrong.

    And to think I could get this sorted in 1 BAS quarter so there'd be minimal overlap, ha!
     
  11. Nick Valsamis

    Nick Valsamis Well-Known Member

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    I guess it depends on how complex the business is. If for example someone is selling paintings, then canceling a sole trader ABN and registering a company would be quite straightforward as you are only really collecting income for yourself.
     
  12. Kinnon Bell

    Kinnon Bell Finance Broker

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    That's what I thought too....
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Keep in mind the CGT and stamp duty implications of transferring a business too.
     
  14. ellejay

    ellejay Well-Known Member

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    So glad I asked this question!
     
  15. Bran

    Bran Well-Known Member

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    My accountants have done it each time
     
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  16. wogitalia

    wogitalia Well-Known Member

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    Registering an ABN in and of itself is a very simple process.

    Deciding on the structure that you wish to register under is somewhat more complex and depending on project growth/size of the business as well as the industry would result in very varied best outcomes.

    If you're not sure what structure suits you already then you're a prime candidate to be best suited seeking professional advice. There are both legal and tax consequences to be considered when deciding a structure and you need to decide (and if a company/trust, register) before you can apply for the ABN.
     
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  17. ellejay

    ellejay Well-Known Member

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    I decided this task is safer in the hands of my accountant. Thanks everyone.
     
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  18. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Depends on state and when. After 1 July there may be zero CGT and in some states zero duty too. eg NSW.
     
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  19. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    SA too has no stamp duty on sale of businesses as of June 2015
     
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  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Unfortunately NSW still has duty on the sale of a business, s11 Duties Act. Furthermore even if the business is based in another state, such as SA where duty has been abolished, NSW duty could still apply if that business supplies goods or services in NSW.

    But this duty on busineses is due to be abolished 01 July 2016.
     
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