Luke Bonner
Luke Bonner at NSW 2478 ABN:81490296580

Bookkeeping

Should you use registered business name or individual name when invoicing a sole trader?

What do I do in the case of invoicing a sole trader?  Am I supposed to put their Registered Business name if they have one, or should I be addressing the invoice to them as an individual, as they are the legal entity behind the ABN?

Top voted answer
Stuart Reynolds

Stuart Reynolds Partner at

Using the registered business name is better, since it will be easier for the sole trader's bookkeeper to recognise the business income. They are ultimately the same legal entity though.

Luke Bonner

Luke Bonner , at NSW 2478 ABN:81490296580

Okay, thanks. My understanding is that the person is the legal entity. The Business Name is just for identification purposes
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Cong Guo

Cong Guo Tax Agent at PGL Accounting

Dear Luke, 

Please go to abr.business.gov.au. 

then input ABN, you will find out business name, use that one. 

In ABR website, you can also find out if the sole trader registered GST or not. 

Luke Bonner

Luke Bonner , at NSW 2478 ABN:81490296580

Thanks.
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Lachlan Grant

Lachlan Grant CEO at

Hi Luke,

Using either is fine as it’s the same legal entity that’s invoicing, however best to use the business trading name to avoid any confusion at your end, and ensure it’s easy to track income for the sole trader as they may have other trading names.

If I can help with anything else, drop me a line.

Regards,
Lachlan

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Maya Lash

Maya Lash Lawyer at

Hi Luke,

Generally, our suggestion is that an invoice should be addressed to the individual, since they are the legal entity. Where that individual has a registered business name, an invoice can be addressed to the individual trading as the registered business name. Meaning, it would appear as follows: [individual's name] t/a [registered business name] ABN [#].

Kind regards,
Maya


 

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