What is the Difference Between ABN and ACN?

The main difference between an Australian Business Number (ABN) and an Australian Company Number (ACN) is that an ABN is issued to all business entities, including sole traders, partnerships, and companies, while an ACN is specific to companies and is issued by the Australian Securities and Investments Commission (ASIC). Here are the key differences between ABN and ACN:

Purpose: An ABN is used to identify and monitor a business for tax purposes, while an ACN is used to identify and monitor a business for company-specific purposes.
Issuing Authority: ABNs are issued by the Australian Taxation Office (ATO), while ACNs are issued by ASIC.
Number of Digits: An ABN is a unique 11-digit number, whereas an ACN is a unique 9-digit number.
Business Structure: All businesses in Australia, regardless of their structure, must have an ABN. On the other hand, only businesses registered as companies require an ACN.
Display on Documents: Both ABN and ACN numbers must be displayed on various business documents, such as invoices, receipts, estimates, orders, tax returns, and letterheads.

In summary, every registered business in Australia needs an ABN for tax purposes, while only companies require an ACN for company-specific purposes and legal compliance.