Can I Have Two ABNs?

Key Takeaways

• The Golden Rule: The fundamental rule is one unique entity = one ABN. An ABN is tied to a specific business structure, not a business name or activity.

• One ABN, Multiple Activities: As a sole trader, you can run multiple different businesses under your single ABN.

• Multiple ABNs Required: You must have a separate ABN for each unique legal entity you operate. For example, if you are a sole trader and also a director of a company, you and the company are two separate entities and require two separate ABNs.

• Application is Free: Applying for an ABN is a free service provided by the government through the Australian Business Register (ABR).

Introduction

As your business journey in Australia evolves, you might find yourself starting a second venture, a side hustle, or entering a new partnership. This often leads to a common and important question: “Can I have two ABNs?”

While the answer can be yes, the question itself often stems from a misunderstanding of what an ABN represents. Getting this right is crucial for legal compliance, tax reporting, and managing your liabilities effectively.

This guide will demystify the rules around multiple ABNs in Australia, explaining the golden rule that governs them and providing clear scenarios for when you need one—and when you don’t.

Learn more about business registration at Business.gov.au.

To understand the rules for multiple ABNs, you only need to remember one principle: an Australian Business Number (ABN) is issued to a specific legal entity or business structure.

An ABN is not tied to a business name or the type of work you do. It’s tied to the structure that is conducting the business. The main types of entities in Australia are:

• Sole Trader (an individual)

• Company (a distinct legal entity, Pty Ltd)

• Partnership (two or more people or entities working together)

• Trust

Therefore, a single entity can only have one ABN. To have a second ABN, you must have a second, separate entity.

This is the most common scenario for freelancers and small business owners. You can operate multiple, unrelated businesses under a single ABN if they all operate under the same business structure.

Example: Sarah is a sole trader with an ABN. She works as a freelance graphic designer. On weekends, she starts a side hustle selling handmade candles at a market.

• Does she need a second ABN for the candle business? No.

• Why? Both the graphic design service and the candle business are being run by the same legal entity: Sarah, the sole trader. She can use her single sole trader ABN for both activities. She can even register multiple business names (trading names) under that one ABN.

Pros of this approach:

• Simplified administration with one BAS (Business Activity Statement) and one tax return for all activities.

Cons of this approach:

• All business finances are mixed, which can make it hard to track the profitability of each venture.

• There is no liability protection. A debt or legal issue from one business activity can put the assets of the other at risk.

You are required to get a new, separate ABN whenever you set up a new and distinct legal entity.

You are operating under different business structures.

This is the most common reason for an individual to be associated with multiple ABNs.

Example: You work as a consultant under your own sole trader ABN. You then decide to set up a company (Pty Ltd) with your partner to launch a new app. The company is a new legal entity and must have its own, separate ABN. In this case, you personally have one ABN, and the company you co-own has another.

You are entering a new partnership.

If you are a sole trader and decide to go into business with someone else, you cannot use your sole trader ABN. The new partnership is a separate entity and must apply for its own ABN.

You need legal and financial separation.

Even if you could legally run two businesses as a sole trader, you might choose to set up a company for your second venture. A company structure provides limited liability, meaning the business’s debts are separate from your personal assets. This new company would require its own ABN.

Holding multiple ABNs means you are managing multiple legal entities. This comes with increased administrative responsibility:

• Separate Tax Obligations: Each entity must lodge its own tax return and, if registered for GST, its own Business Activity Statements (BAS).

• Distinct Financial Records: You must keep completely separate bank accounts, bookkeeping, and financial records for each entity. Mixing finances can lead to serious legal and accounting problems.

• Keeping Details Updated: You must ensure the contact and business details for each ABN are kept up to date on the Australian Business Register (ABR).

If you have determined you need a new ABN for a new business entity, the process is simple and, most importantly, free.

You can apply online directly with the government via the Australian Business Register (ABR) website: www.abr.gov.au. Be wary of third-party services that charge a fee to do this for you.

You will need to prove you are entitled to an ABN by showing you are starting or carrying on an enterprise.

Learn more about registering a company at ASIC.

Conclusion

The question “Can I have two ABNs?” is best answered by thinking about your business structure. The golden rule is one unique entity, one ABN.

If you are operating all your ventures as a sole trader, you only need one ABN. The moment you create a new legal entity—by starting a company or forming a partnership—that new entity will require its own, separate ABN.

Understanding this principle is key to ensuring you are compliant, managing your risks effectively, and structuring your business ventures for success.

LawDocs: Your Partner in Business Compliance

Need legal support for managing multiple ABNs or setting up a new business entity? At LawDocs, our experienced team provides expert guidance to ensure your business complies with Australian regulations.

Learn more about business structures and ABN requirements at ATO.