Question: Can I Use the Same ABN to Run More Than One Business?
Answer:As a Sole Trader
If you are a sole trader, you will have an Australian Business Number (ABN) and a Tax File Number (TFN). As a sole trader, you can use the same ABN to run more than one business.
Any other business structure will have a separate TFN for their business, but as a sole trader, your business’ TFN is your personal TFN.
If you choose to run two businesses as a sole trader, you will not need to register for a separate ABN. You can conduct both businesses with the same ABN and TFN as the sole trader owner is the same.
As a Company
Yes, you can operate two businesses from the same company.
For example, you may run a personal training business and a marketing business from the same company. In these circumstances, you can use the company’s ABN to operate both companies.
However, it is best practice to have two separate companies to conduct more than one business. Operating two businesses through one company comes with risks.
Let us take the same example of a company running a personal training business and a marketing business. If someone sues the marketing company or creditors take action against the marketing business for unpaid debts, the assets of the personal training company are also at risk. You could, therefore, lose both your marketing business and your personal training business.
In a similar scenario, if you incorporate two companies, only the assets of the relevant company would be at risk. While your marketing company may be compromised, you can continue to run your personal training business as usual.
