Apply for an ABN and Legitimize Your Business Today!

Introduction:

Small businesses play a significant role in the Australian economy. For these businesses to operate legally, they must have an Australian Business Number (ABN). In this article, we will explain in detail what ABNs are, who needs them, how to apply for them, and other important things to consider for small business owners.

I. What is an ABN?

An ABN is an 11-digit unique identifier assigned to an enterprise or business operating in Australia. It's necessary to open a business bank account, register for GST, and other business services. Xero offers a comprehensive guide on What is an ABN that covers its definition, application process, advantages, and more.

II. Before Applying for an ABN

Before a business owner applies for an ABN, they must ensure they have the necessary information. The application process requires information such as business activity, tax file number, address details, and more. There are also a few questions that the government will ask, such as whether your business has an Australian Company Number and what name, location, and activity your business operates under.

III. How to Apply for an ABN

There are two ways to apply for an ABN: online or via paper form. The online process is self-explanatory and easy to follow. Once submitted, the results are usually available within a few minutes. If there are queries about the application, the government will inform you with a reference number via email. The paper form process takes a longer time to process, and results are not as immediate. There is no fee for submitting an application for an ABN.

IV. Other Business Registrations to Consider

After obtaining the ABN, other business registrations are required for tax compliance. These registrations include acquiring a Goods and Services Tax (GST) number, which is necessary when the business's turnover exceeds ,000. Registering for the PAYG system is necessary when a business owner requires staff to conduct payroll. If the business operates under a name other than the business owner's legal name, it is also necessary to register this business name with ASIC.

V. Keeping ABN Details Up-to-Date

It is crucial to keep ABN details up-to-date with the Australian Business Register (ABR). If there are changes to the business, such as location or business activity, business owners must inform the ABR within 28 days. Business owners can update their details using ABR online services, or they can instruct their tax agent to conduct the update for them.

VI. Xero Pricing Plans for Accounting Software

Xero offers an accounting software service that small business owners can use to manage their finances. These services come in three different tiers: Starter, Standard, and Premium. The Starter package is free to use, while the Standard package costs $25 per month. The Premium package provides business owners with more advanced features and costs per month.

VII. Conclusion

Applying for an ABN is essential for small business owners operating in Australia. It allows them to manage their finances, register for GST, and comply with tax regulations. Business owners must also ensure that their ABN details are up-to-date with the Australian Business Register. Xero offers a comprehensive guide on ABNs and various accounting software services to help small business owners manage their finances successfully.