So you want to start a Shopify store? Awesome! It’s likely that you will need to register an Australian Business Number (ABN) to sell on Shopify. Find out more here.
Selling on Shopify can be a great way to make a little extra cash, or even start a full time hustle. If you are hoping to run your Shopify store as a business, and make a profit, you will need to register an Australian Business Number (ABN). The ABN allows you to operate as a business.
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What is an ABN?
An ABN is a unique 11-digit number which identifies your business. Any sole trader, partnership or company will need an ABN to conduct business in Australia. Further, to register your business name, you will also need an ABN.
Do I need an ABN to sell on Shopify?
You will need an ABN if you set up your Shopify store intending to create a business. Alternatively, if you are selling on Shopify as a hobby, then you may not need an ABN.
If you are unsure if you are selling as a hobby or as a business, click here to see the ATO guide.
Additionally, you are required to register for GST when your sales earn more than $75,000.00 per year. You will register for GST using your ABN.
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Key questions to ask yourself
- Am I running a business?
- Do I intend to make a profit?
- Will I be making more than $75,000.00 a year?
If you answer yes to any of these, it is likely you will need an ABN.
Benefits of registering for an ABN
Regardless of whether your Shopify store operates as a hobby or business, it is beneficial to register an ABN.
An ABN will enhance the legitimacy of your store and improve customer perception. Your ABN will be listed on your tax invoice and on your website.
Moreover, some suppliers will only supply to registered businesses.
Even if you are planning on setting up your Shopify store as a hobby, we recommend registering an ABN. This will ensure you are protected and properly set up, just incase your venture ends up making a profit!
Registering a Domain Name
When you create a Shopify account, you are given a free domain: “.myshopify.com”. However, when launching your online business, it is preferable to have a custom domain name. This is because your website is the face of your business and it reflects your brand. A custom domain with the country code extension often looks more professional.
If you want a domain with an Australian extension such as “.com.au”, you will need to register for an ABN.
Conclusion
Therefore, it is advisable to register an ABN if you are selling on Shopify. If you need assistance registering one, get in contact with a business formation lawyer for relevant legal advice.
For further information about selling online, dropping shipping and fulfilment on amazon please see our legal guides. You can also see if you need an ABN to sell on Amazon here.
