Task C2.2 Starting a business

Step 1 of 1


For some time, your ambition has been to start and run a business in your local area. You have worked in a variety of businesses over the last eight years, as an employee and as a manager, to gain knowledge and experience in a variety of retail businesses. You and your partner have built up savings and a recent inheritance has ensured you now have sufficient funds to follow your dream. Your partner enjoys working as a teacher and so is going to continue teaching, which will provide money to live on while you concentrate on developing the business. You expect you will need to hire staff, at least one person full-time as well as some part-time staff.

After surveying the local business area, you have identified that your area would provide a good opportunity for one of the following retail businesses:

Florist and gift shop with a web presence in addition to the shopfront

Graphic designer who concentrates on designs for small businesses, builds websites and interactive multimedia objects

A mobile DJ business, specialising in school functions and parties

Sporting equipment marketed at individuals who can afford to pay for unique and specially designed gear

Babywear shop selling organic and chemical-free baby wear and supplies

Leisure clothing aimed at young adults who want something a bit different

Your task

  1. Select a business and decide on an appropriate name. Choose a name that gives a clear, positive message to potential customers about what your business provides. Design a suitable logo.
  2. Select the 'right' business structure for your business. Give reasons for your choice. Explain and clearly identify the tax implications of your choice.
  3. Check the business name meets legal requirements for this type of business structure. (This varies with the business structure you select and between states and territories. Your teacher will provide some advice about how to check on the name.)
  4. Explain when, why and how you will apply for a tax file number (TFN) and an Australian business number (ABN).
  5. Identify the taxes your business will collect and/or pay. Briefly explain why the business needs to be registered for these with the ATO.


Present your findings in a format that provides you with a hard copy such as a poster, a section of a business plan or narrative. Once completed, display your findings to other students to get feedback on your decisions.

  • Fact 25

    The first computers used by the ATO were used primarily for issuing the five million refund cheques sent out each year in the mid 1960s.

Income tax

The amount of tax paid on taxable income.

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