Registering your business is one of the most important things every business owner should do when starting a business. Registering for an ABN or Australian Business Number is the first step in making your business legal from the start.
It is a unique 11-digit number which will be assigned to your business and serves as your identification on the ABN Lookup website. You should register for an ABN before doing any trade in your new business since this number needs to be shown on every receipt and invoice that you release to clients.
If you’re still new in the world of business, there might be a lot of questions in your mind regarding ABN. Here is the basic information you need to know to help you start up.
Who Needs an ABN?
If you’re doing activities that are aimed to make profit, then you definitely need to register for an ABN. Aside from confirming the identity of your business to other traders when doing business related activities such as ordering, ABN has other more uses. It helps avoid PAYG, helps claim energy grant and GST credits, plus it also gives you an Australian domain name. If you own a previous ABN that was cancelled, reactivating ABN is all you need to do.
Cost of Application
Applying for an ABN is not that complicated at all. In fact, you can apply in two ways. First, you can get an accountant to apply for you. This is a convenient way but you would be spending more since you have to pay the accountant for his services.
On the other hand, you can apply for ABN by yourself. Simply fill up the application form and send your application or do it more conveniently online. You don’t need to pay anything with this method.
When Do You Need to Apply?
For new businesses, it is advised that you apply for ABN before starting your business operations. This is to be sure that you could track everything from the very start – the expenses, income, and other flow of finances in your business.
Starting your business doesn’t only mean opening it for customers but also other tasks that prepare it for operation such as setting up a website, buying equipment and stocks needed, and so on. As long as you start spending for your business, you already need to apply for an ABN to help you keep track of everything.
How long is the Processing Time?
Registering for an ABN is pretty straight forward. You can even get your ABN immediately after the process provided that all the information you have given are correct and complete. However, there are cases when it will take time before getting approved.
This is when you have missing or omitted some key information about your business or just provided incorrect data accidentally. When the system can’t verify your information immediately, your application needs to be processed manually and you’ll have to wait for up to 28 days to know the result.
Registering for ABN is not that complicated at all if you know these basic information.