Question

Shally is a very keen photographer and is considering setting up her own business. It has been a hobby of hers for many years but she now wants to take it more seriously.

Outline to Shally, the factors that she needs to take into consideration should she wish to ensure that her ‘new business’ is interpreted as such by the ATO. Use specific examples that relate to her photography business, reference to case law and any legislation.

  

Answer 1

ANSWER:-

Considering Shally needs to take her enthusiasm for photography in a substantially more expert sense and is considering beginning a business, she needs to ensure that she comprehends the vital structure that is fundamental the whole procedure. Right off the bat, she needs to consider the type of business she might want to enjoy. on the off chance that she needs to set up an online business, she needs to consider the medium she will offer her item (the photos), how she will contact her customers and also how her customers would contact her. After she chooses the medium, she needs to set up an online installment structure.

For this reason, she can either rent her photos or pitch the restrictive rights and utilization to the customers. She can utilize a prebuilt layout store utilizing either Shopify or Joomla. she can even utilize WordPress as the reason for her store and afterward fabricate the site piece by piece till she chooses the substance is adequate to be distributed. In the event that she needs to independent as a picture taker, she can offer her work at sites,

For example: Shutter stock .

Expecting she needs to set up a neighborhood business also, to use the vast majority of her chance and speculation, she can basically think about a sole proprietorship as the base structure for her business. The tax collection laws are easy to comprehend and actualize and she keeps up the control of her business and the basic leadership process too.

• On the off chance that she can't raise enough capital alone, she can basically consent to an organization structure which ought to be done simply after a composed understanding in authoritative keeping in mind the end goal to avert future complaints.
• The structure of tax collection changes a bit since there are basically two accomplices with square with control over the procedures of the organization now.
• She can likewise consent to a LLC which will enable all her enthusiasm for owning her own organization, while, as yet getting a charge out of the advantages of an association and the preferences that convey to the table.
• Contingent upon her extent of execution, she can extend her business and contract more individuals as vital, to a point where she would then be able to apply for a C-organization and S-partnership structure where there is a distinction in tax collection approaches in light of the quantity of representatives and how the advantages are partitioned among the investors.

She should be familiar with licensed innovation laws and also tax collection structures so as to keep up the best possible working of her business and additionally control the basic leadership forms in her organization.