The system for registering Business Names is now handled by ASIC, in replacement of the old State-based systems.
It has removed much of the flexibility associated with registering a business name and adds to the importance of getting it right.
First things first, if you want to trade using a name other than your own, you must register a business name. It is against the law to do otherwise. Not to mention a poor business practice as you have no protection over your name.
The name needs to be registered via an ABN, the right ABN
The registration of a business name takes on even great importance when there are unrelated parties involved in a business. In order for everyone’s rights to be protected, it must be registered correctly.
Some other key points to keep in mind
- A domain name, is not a business name, holding a domain name doesn’t give you the right to run a business under that name
- While owning the business name is important, the protections it provides your business has its limitations.
- Don’t let your registration lapse, as soon as you do, someone else could pinch it out from under you
On the topic of domain names
With alarming frequency, we come across businesses that have the ownership of their domain names incorrectly structured. This is of major concern when there are unrelated parties involved in a business, so make sure you get it right, all your rights could be seriously in jeopardy.
Regardless, if your domain name is an important component of your business (as is the case for most businesses these days) if it is held outside your business structure, it could result in unforeseen tax consequences in places you don’t expect when you sell.
It could also find itself at the mercy of Creditors if it technically fell outside the protection of your business structure we worked so hard to secure.
On the topic of protections provided by registering a business name
A Trademark is much more protection than just a business name. Yes, there are costs involved, and of course, a solicitor is required in this regard. But we would encourage you to consider registering your Trademark and we can point you in the direction of good people who can help should you so desire.
More about Accounting & Tax
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We would love to meet up and discuss how we can help moving forward, coffees on us and of course there is no cost for an initial chat so don’t put it off any longer.