Changed to a Company? Here’s What to Tell Your Clients, Suppliers and the ATO
- johnry8
- Sep 23
- 2 min read
Switching from a sole trader to a company is a big step. It gives you more structure, protection and opportunities to grow. But it also means updating the people and organisations you deal with.
Many business owners think once they register the company, that is the end of it. Not informing the right stakeholders can cause confusion, delays and even legal issues. Clear communication helps you stay compliant, keep your relationships strong and avoid unnecessary stress.
Who You Should Notify and What to Say
Clients and Customers
Let your clients know that your business structure has changed. If you invoice them or have an ongoing relationship, they need to be aware of your new setup.
What to tell them:
Your new company name and ABN
Any changes to your invoicing process or bank details
Reassurance that your service or product will continue without disruption
Helpful tip: Make the message simple, friendly and professional. A quick email update is often all that is needed.
Suppliers and Service Providers
These include anyone you pay for goods or services like software platforms, wholesalers, landlords and utilities.
What you need to do:
Update your company name and ABN on file
Sign new contracts if necessary, under your company name
Make sure your supplier invoices reflect your new entity
Why this matters: Having your old details on supplier invoices can lead to mistakes in your books and in your tax reports.
The Australian Taxation Office (ATO)
Even if you have registered with ASIC, you still need to update your information with the ATO.
What to check:
Your new company has its own ABN
You are registered for GST if your turnover meets the threshold
PAYG is set up correctly if you have employees
Your sole trader ABN is cancelled when everything is fully moved
Best practice: Work with your accountant to manage this step properly. It helps avoid double records or compliance issues.
Banks and Insurance Providers
Your bank accounts and insurance policies need to reflect the company’s name, not your personal one.
Make sure you:
Open a new business account under your company
Transfer incoming and outgoing payments to the new account
Update your business insurance policies
Keep in mind: Using personal accounts for company transactions can blur the line between your personal and business finances, which can lead to issues later.
Your Team
If you have employees, it is important to explain the change to them as well.
Communicate:
The updated company name on their contracts or payslips
That nothing changes with their pay, benefits or entitlements
Who they can talk to if they have questions about the change
Being upfront with your team helps build trust and ensures everything is handled smoothly.
Keep a Record
Whether it is an email, letter or updated agreement, make sure to keep a record of all communications. It protects you in case anything is questioned down the track.
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