If you're applying for an ABN, there are a few things you'll have to have on hand and things you'll have to know to complete this process successfully. If you choose to let EtaxPlus assist you in this process, they offer free ABN registration for your business. The first thing that you'll need to know is if your business is entitled to an ABN registration or not and which structure your business falls under.
Different Business Structures
There are four business structures you can choose to have your business registered under. Each one has benefits and drawbacks. It is critical that you understand the differences when you're choosing which is ideal for your business because what structure you choose can affect your costs, asset protection, and any taxes you'll be liable to pay.
Company. A company business structure is one with a higher administration and set-up cost. Directors run the company, but the shareholders own it. A company must apply for a tax file number, is entitled to an ABN, owns the money that it earns, pays its tax bill by instalments, and they must pay super guarantee contributions.
Partnership. A partnership structure is a business made up of people who distribute the total income and losses among themselves. This is an inexpensive business option as the partners usually share control, income, and losses. A partnership doesn't pay any taxes on its profits. It is the responsibility of each partner to report their share to on their individual tax return.
Sole Trader. A sole trader refers to the person running the business, and it is the least expensive option. You report all of the income from your business on your individual tax return, apply for an ABN, pay taxes at the individual rate, and you claim deductions for any super contributions you personally put in.
Trust. A trust is a more expensive option. In this arrangement, the trustee is responsible for the company's operation. The profits from the trust go to any named beneficiaries. A trust must have its own tax file number, apply for an ABN, may be liable for annual taxes depending on how the contract is worded, and it must pay super contributions for any employees.
Once you've decided on a structure, you should know if you're required to apply for an ABN or not. You can do this on your own or have EtaxPlus get your business a free ABN registration.
Information About Your Free ABN Registration
If you're ready to get your Free ABN Registration from EtaxPlus, you'll need a few key pieces of information once you've decided on your business structure. This will help to speed the process along and get you on your way faster.
Dates of birth and names or names, addresses, and dates of birth for key people. For example, any directors, partners, or trustees.
Additionally, you'll have to agree that your business will have several characteristics. For example, you source your own clients, you can delegate work, you can do invoices and set a pay rate, you have a bank account just for your business, and you can provide evidence that you are entitled to receive an ABN.If all of this sounds overwhelming, the professional and friendly staff at EtaxPlus are ready and willing to help you by offering free ABN registration. All you have to do is contact our office at 1300 221 125 and set up an appointment. We'll be more than happy to help you!