• Examples

    The following examples show the types of registrations a business may need:

    Example: Registration for a sole trader

    Nguyen is a qualified electrician. He starts his own part-time business, doing jobs on customer premises and at his workshop. Some of his business details are:

    • Business structure: sole trader
    • Expected turnover: $40,000 per year
    • Staff: works alone.

    Initial business registrations for Nguyen

    ABN

    Nguyen registers for his ABN online at the Australian Business RegisterExternal Link. He can easily do his business name registration at the same time.

    TFN

    As a sole trader, Nguyen uses his individual TFN. He doesn't need a separate TFN for his business.

    Online services

    By registering for a personal myGov account and linking it to the ATO, Nguyen can do tax transactions for his business online. He can do this using our Online services for individuals and sole traders.

    GST

    The expected GST turnover from his business is less than $75,000 so Nguyen doesn't have to register for GST. He decides to not register, which means he can't charge GST or claim GST credits. He can register later if he needs to.

    PAYG withholding

    Nguyen plans to work alone, with no employees. He can register later if he needs to.

    Fringe benefits tax

    Nguyen has no employees.

    Business name

    Nguyen can register his business name 'Nguyen's All Electrical' on the Australian Business RegisterExternal Link when he registers for an ABN.

    Later, Nguyen decides to put more time into his business. He expects his business sales to increase to $90,000 per year.

    Adding GST registration

    GST

    Nguyen's projected GST turnover is now $75,000 or more, so he must register for GST within 21 days of when he starts putting more time into his business. Nguyen will then charge GST on his sales, and will be entitled to claim GST credits for any business purchases that include GST.

    Next steps:

    Example: Registration for a company

    Renee starts her own clothing shop. At the same time she creates a company, Renee Fashions Pty Ltd, through which she runs the business. Some of his business details are:

    • Business structure: company
    • Expected turnover: $190,000 per year
    • Staff: three (including Renee).

    Business registrations for Renee Fashions Pty Ltd

    ACN

    Before doing her tax registrations, Renee must register her company with ASIC and obtain an Australian company number.

    ABN

    The company needs an ABN as it must register for GST. Renee does the ABN registration online at the Australian Business RegisterExternal Link. If she wants to, Renee can also register for her business name, other tax registrations, and an AUSkey at the same time.

    TFN

    The company needs a separate TFN.

    Secure online authentication

    To do the company's tax transactions online, Renee needs a secure way to verify her business identity online. Renee can choose to use either Manage ABN Connections or an AUSkey to do this.

    Online services

    Renee can do tax transactions for her business online using online services.

    GST

    The company must register for GST because its expected annual GST turnover is more than $75,000.

    PAYG withholding

    As an employer, Renee Fashions Pty Ltd will need to withhold tax from wages and must register for PAYG withholding.

    Fringe benefits tax

    Renee plans to have private use of a company car, which is a fringe benefit.

    Business name

    Renee can register the company's business name on the Australian Business RegisterExternal Link when she registers it for an ABN.

    Next steps:

    Last modified: 12 Jul 2016QC 31804