It is a wise choice to register a business, especially if you choose to incorporate it. Although it may require some tedious paperwork and fees, it is beneficial for your operations to get accreditation from the government. If you are seriously considering expanding your business operations, the only way you can get this done is to register a business. Read on to see the importance of this process, along with its perks and benefits:
Avoid Personal Risks and Liabilities
When you opt to incorporate your business, you eliminate the risk of personal liabilities. The extent of how much you are liable for depends on the number of shares you own in the corporation. Simply put, should something negative befall your business, your personal properties are safe. They cannot be forcefully seized by the government and be used to repay your business debts.
Take Calculated Risks
Your registered and incorporated business is considered a separate legal entity in the eyes of the law. The registration affords you protection so that no one will steal your name and your concept. With this in place, your business is considered a separate human that incurs liabilities under its own name. As such, you can take calculated risks without worrying about your personal assets.
Avail of Equity Financing
If you are a registered business, your ability to raise funds for expansion will be a lot easier. Investors, lenders, and financial institutions prefer to do business with a registered company because there is a formal structure in place. When you register a business, this means you can raise money through equity financing, which entails selling some shares to prospective investors or venture capitalists. This is beneficial because the money you raise incurs no interest. You just need to pay out dividends to your shareholders. This move is crucial for expanding your business.
Boost Company Prestige
In business, reputation is the name of the game. Clients, suppliers, and financial institutions prefer companies that have a good brand image. When you register your business, it means you are a legitimate entity that is sanctioned by the law. You are not a fly-by-night company but a permanent one, so you inspire confidence in the people you deal with. When you register your business, you are considered more reputable and stable. In fact, the government will only do business with registered companies.
Assured Perpetual Succession
When a business is considered a separate legal entity, there is assured perpetual succession. Because third parties establish the company, this means it has an unlimited lifespan. Even if you pass away, the business will remain viable. Even if some owners or directors die, or if the business changes ownership, the company will still exist. Only business registration affords you this kind of legacy, so the hard work you put in your company can outlive you and last for generations.
Establish Business Bank Accounts
It would be advisable to open a business bank account so that you can separate your personal and business transactions. This setup paves the way for easier monitoring and tracking. This will come in handy when it is time to pay your taxes. When you open this kind of account, you will be required to show your proof of business registration. Additionally, this kind of account helps you project a more professional vibe because it is so much better for clients to write checks issued to your business instead of your name.
Final Word
If you are ready to take your business to greater heights, then register your business. Registering your company will help you amplify your brand’s credibility. With this, you can improve your perception regarding your company. You can also expect better future dealings with other parties because others prefer to engage with registered companies. When you opt for business registration, you open new opportunities for your company that would otherwise have been unavailable.
Author Bio:
Julian Carter is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.