Multiple Business Under One Company

 If you are wondering whether you can trade multiple businesses under one company name, we are here to guide you through. The answer is yes, you can trade under multiple business names and in multiple ways.

Overview of Corporate Personality

Do you know what corporate personality is? It refers to a company that is considered legally separate from its owners and directors. Similar to a sole trader, a registered corporate personality company can:

Incur Debts

Buy & Sell A Property

Sue Others & Get Sued

Be Criminally Liable

Liable In Civil Matters

Under the ABN registration, companies can now register for multiple business names quite similar to a sole trader.

Advantages Of Registering Under Multiple Business Names

Registering multiple names saves you with fees from setting up multiple companies

Running multiple businesses under a company can limit your personal liability

Managing multiple companies under one larger structure is comparatively easy

Your company’s registered name will remain the same

Your company’s ACN and ABN will remain the same


Disadvantages Of Registering Under Multiple Business Names

Liabilities of one business name may extend to another

Confusion between business names operating under a company

Tax implications may be less favorable

A company may have to lodge multiple tax returns

A company may have to register multiple trademarks

Tax Considerations For Running Multiple Businesses

When it comes to multiple businesses running under one parent company compared to a sole trader, tax laws apply quite differently in both cases. The tax consideration guidelines listed by the Australian Government Business website states that:

Companies do not enjoy tax free thresholds

The income rate is different for companies

Companies are taxed separately, not under income tax

Small business concessions don’t apply to companies

Companies may have to pay other taxes

Though it is possible to run multiple businesses under one company, it comes with its own constraints. If you are not sure what will work the best for your business, talk to our business and tax consultants at KPG Taxation. We are skilled and experienced enough to provide worthy advice.

Location: Melbourne VIC, Australia

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