You’re ready to buy your franchise and set up your own business. So should you register for an Australian Business Number or a business (trading) name?

Registering for both of these are completely separate processes.

Registering for a business name

A business name can be your own name or a company name; it is simply the title under which you will be trading as a legal entity.

If you choose your own name as the legal trading entity, there is no need to register it. But you will need to if the name is James Swift Services, for instance.

Each state and territory manages the registration of business names.

Registering for an Australian Business Name (ABN)

Although it isn’t compulsory to have an ABN it is required for tax purposes. If you register for the goods and services tax you’ll need an ABN, and it should be noted on any invoices or sales documentation.

If you don’t use an ABN your business may find other firms hold back 46.5 percent from any payment to you.

Registrations for ABNs are managed by the Australian Taxation Office (ATO).

Check out the business.gov.au website for more information on business registrations.