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Tax for second sole trader business

Newbie

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Replies 1

Hi, I currently have a sole trader ABN and want to start a second seperate small business. Because they're both sole trader businesses I understand that I can use the one ABN for both but I'm just wondering what the best practice for record keeping is. Should I be recording income and expenses seperately for the two business or does that not matter because it's all under one ABN? Thanks in advance! 

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Most helpful response

Devotee

Replies 0

Yes you can run multiple businesses under your soel trader ABN without needing to register for another ABN. For reporting purposes its best to keep seperate records for each business as you would want to understand your financial position for both (e.g. profit and loss). This will help you to make decisions idnependently for each. You can also report on a separate BAS under a different branch of your ABN, however as a sole trader you will need to report all of your business income in your individual tax return at the end of the year. Whether you have one business or two under the same ABN the rate of tax you pay doesnt change.

1 REPLY 1

Most helpful response

Devotee

Replies 0

Yes you can run multiple businesses under your soel trader ABN without needing to register for another ABN. For reporting purposes its best to keep seperate records for each business as you would want to understand your financial position for both (e.g. profit and loss). This will help you to make decisions idnependently for each. You can also report on a separate BAS under a different branch of your ABN, however as a sole trader you will need to report all of your business income in your individual tax return at the end of the year. Whether you have one business or two under the same ABN the rate of tax you pay doesnt change.