For most sole traders, getting an Australian Business Number (ABN) before registering a business name is worth it. It lets you start invoicing, open a business bank account, and operate legally from day one.
But many new freelancers and tradies hold off on applying because they assume they need to choose a business name first. That can leave them stuck on a decision they don’t need to make yet.
The team at Australian Business Magazine sees this confusion regularly, so we put together this guide to clear it up. We’ll cover how the two registrations work, when you need each one, and what happens if you get your ABN first.
Before getting into which one you need first, let’s look at what each registration actually does.
ABN vs. Business Name: What’s the Difference?
An ABN identifies your business to the tax office and other government agencies. By contrast, a business name is what your customers see on your invoices, website, and signage.
The table below breaks down the main differences between the two.
| Factor | ABN | Business Name |
| Full name | Australian Business Number | Registered Business Name |
| Issued by | Australian Taxation Office (ATO) | Australian Securities and Investments Commission (ASIC) |
| What it does | Identifies your business for tax and government dealings | Lets you trade under a name other than your own |
| Required for | Invoicing, tax registrations, government payments | Trading publicly under a name that isn’t your legal name |
| Cost | Free | Annual or 3-year fee |
| Linked to each other? | No | No |
One doesn’t require the other, so you can apply for them in whichever order suits you.
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Do You Need a Business Name to Get an ABN?
No, you don’t need a business name to apply for an ABN. Sole traders can apply using their own legal name and trade under that name without registering a separate business name.
Take John Smith as an example. If he trades simply as John Smith, he doesn’t need to register a business name. But the moment he trades as John Smith Plumbing, he’s using a name other than his own, so ASIC registration becomes a legal requirement.
Getting an ABN doesn’t automatically register you for GST either. GST, or goods and services tax, is a separate registration you take on once your turnover reaches $75,000 or more.
What Your ABN Will Show Without a Business Name
Without a registered trading name, the Australian Business Register displays your legal name by default (your full legal name, nothing else). Clients or suppliers who search your ABN through ABN Lookup will see your legal name as the entity name.
If you later register a business name, you can add it to your ABN details. The register will then show your business name alongside your legal name.
Reasons to Get the ABN First
For most people starting out, the ABN is the only registration they need to get moving. We’ve seen new business owners hold off on sending their first invoice while they wait to finalise a business name.
That delay creates an unnecessary roadblock, because the application doesn’t depend on having a name at all. You can apply the same day you decide to start trading, name or no name. An ABN removes that roadblock entirely. Here are a few reasons it makes sense to apply first:
- You Can Invoice Clients: If you don’t provide an ABN when you need to, your client may have to withhold tax from your payment. Having it ready avoids that issue and makes it easier to get your invoices processed.
- You Can Start Setting Up Your Business: Your ABN identifies your business in dealings with the government and the tax system. It also helps you set up practical essentials, such as a business bank account, without waiting until you’ve chosen a trading name.
- You Can Apply Without Paying a Fee: The application is free through the Australian Business Register. You won’t pay any ongoing fees either, so there’s no need to wait while you decide on a business name.
Getting your ABN first gives you a foundation for invoicing, payments and other business essentials. You can then register a separate trading name if you decide you need one.
When a Business Name Should Come First
Registering a business name before your ABN makes more sense if you’re building a public-facing brand from the start. But if you’re opening a storefront or putting up signage, trading under your own name might not fit the brand you’re building.
In these cases, you can register the business name first and then apply for your ABN. The order doesn’t mean much in practice, as long as you have both sorted before customers see your branding.
Getting an ABN: The Application Process
You’ll need a few basic details before you start. Here’s a step-by-step guide to completing your ABN application through the Australian Business Register (ABR):
Step 1: Go to Business.gov.au
Head to the Australian Government’s business registration service at business.gov.au. You can apply for an ABN here directly.
Step 2: Confirm Your Eligibility
Check whether you’re carrying on a business or enterprise. If you are, you may be eligible for an ABN. This includes sole traders, contractors, freelancers, and other business operators.
Step 3: Have Your Details Ready
You’ll need your tax file number, business structure, and start date. If you’re applying as part of a joint venture or on behalf of a company, you’ll need the relevant ABN reference number for each entity.
Step 4: Submit Your Application
Once you’ve filled in your details, submit the form. The ABR processes some applications immediately, while others need manual review. If yours requires further review, the Australian Business Register will contact you, and the process can take up to 28 days.
Don’t Let the Name Hold You Back
Waiting on the perfect business name shouldn’t hold up your ABN application. Sole traders can apply under their own legal name and register a business name later if and when they need one. If none of the situations we covered above applies to you, there’s no reason to wait. Apply for the ABN, start invoicing, and register the name when you’re ready to use it.
For more practical guides on starting and running a business in Australia, visit Australian Business Magazine.
Frequently Asked Questions
These are some of the most common questions we get about ABN and business name registration.
Can I Check Business Name Availability Before I Apply for an ABN?
Yes. ASIC’s business names register lets you search name availability before you commit to anything. You don’t need an ABN to check. If the name is taken or flagged, you’ll find out before you’ve built your brand around it, which saves you the hassle of rebranding later.
What Happens If My ABN Application Is Rejected?
A rejected ABN application usually means the Australian Business Register couldn’t verify your details or eligibility. You’ll receive a reference number and a reason for the decision. In most cases, you can reapply once you’ve corrected the issue, or contact the ABR directly for guidance on next steps.
Do Sole Traders Need a Separate ABN for Each Business They Run?
No. A sole trader can run multiple businesses under the same ABN, as long as they operate under the same business structure. If you set up a second business under a different structure, such as a company, that entity will need its own ABN.
