The entrepreneur’s guide to an easy abn online application
Most people still have some difficulties when it comes to registering their business and understanding the rest of the government’s requirements, especially when it comes to the ABN. Here is a fast guide to an easy abn online application.
But first, what is an ABN?
The ABN is a unique 11 digit number that identifies your business or organisation to the government and community. Government uses ABN information to build a better understanding of business demographics in your local area.
This helps to guide service delivery, plan and manage infrastructure and provide disaster recovery for you and your community.
1. Have all your proof of identity (POI) information. This is your personal information and it will be validated against other sources like your tax records. It’s important to be as accurate as possible when giving out your POI to avoid delays in abn online application processing or even penalties.
2. Determine the way you want to apply to your abn:
- By Mail: To apply for an abn you need to choose the application form that best scribes your venture’s structure. Once you have filled out the application you need to send it by post to the ABR. They will send your application back to you within 28 days, provided the form was correctly filled out and doesn’t contain any mistakes that might compromise its validity.
- Online: The abn online application is substantially faster to process. You can fill out all the information and register your abn in just 15 minutes.
3. Determine if you want to register as:
- Individual: Choose this option if you want to start trading as a sole trader. In a sole proprietorship, the single owner is responsible for making all the financial decisions of the organization and is in charge of the abn online application.
- Partnership: A partnership is formed by two or more people who come together to run a business. In both a sole proprietorship and a partnership, partners have jointly and unlimited liability for all debts and liabilities that might occur while operating the business.
- Company: Choose this option if you have already started a business with ASIC and need an ABN. A company provides owners with limited liability protection against business losses and obligations. This means owners of a company will not lose have to respond with their personal property in case the company acquires debts that it can’t pay. Also, owners of a corporation are liable for company debts and obligations up to the extent of their investment in the company.
4. Make sure you don’t currently have or previously held an abn for the entity your are applying for.
5. Have other information ready:
- Legal name of the entity
- CAN: Companies and registrable Australian bodies will need to register with the Australian Securities and Investments Commission (ASIC) before applying for an ABN.
- TFN: Your ABN application will be processed faster if you provide the TFNs requested
- Business activity details & location
- Associates details