Before I start giving us some of the important reason for the registration of your business, let me quickly ask you this HONEST question, and I'll love if you can provide an honest answer at end of this article.
Q? Would you trust a total stranger/ghost with your valuable property?
Dealing with a non-registered business is just like dealing with ghost and can be very risky as they can decide to move away without trace.
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No sane person will have any business deal with you without properly research about your business to ensure he/she is on a safer side..
When you’re a new business owner, Bloggers are not exempted, every Penny you spend has to provide a return on your investment. One of those expenses is the registration of your company. While it may be
one of those expenses that seem largely unnecessary during the beginning stages of your business.
Bellow are the 7 reasons why you should register your business.
1) Protecting your assets
Starting a business may be a dream but losing your personal assets that support you and your family are a reality and that reality could turn in to a nightmare if your business
doesn’t work out, you maybe sued, or another unforeseen financial loss. By registering your business, your business assets and liabilities
are separated from each other. There are many other reasons to incorporate but for the protection of your family, this may be the most important.
2) Do you sell a product?
So you invented a revolutionary new product and you’re selling your product all over the world to tens of thousands of people. Your business seems to be on its way to greatness
but then, something in your product causes injury to some of your customers and as a result, lawsuits and product recalls abound and almost overnight, you’ve maxed out your insurance coverage and lawsuits are threatening to bankrupt your company. This is yet another real world example of why the
protection of your business registration is a must.
3) Do you need money?
If you are seeking private equity, you must be registered as a business. Investors want the protection of incorporation as well as a
defined exit strategy which is defined in some of your incorporation documents. Venture
capitalists prefer to fund actual corporations since corporations can later become publically traded.
4) Want big name business?
Companies large and small prefer to work with subcontractors because they don’t have to pay employee benefits. What they don’t want
to do is have long term contracts with individuals since the line dividing a contractor and an employee is blurred when the
individual isn’t an actual registered company.
Should you be passed over for a contract that could define your first year because you didn’t spend a couple of hundred dollars to register
your business?
5). Bank account – A business must be registered before a corporate bank account can be opened for that business. The advantage of having a corporate bank account is separation of business funds from personal
funds which is fundamental for any business owner that seeks to make progress with the business venture.
6). Financing – Businesses will need financing at different stages of their growth in form of grants, loans, investments etc. Financiers will
always prefer more established and duly registered entities especially for small or start-up businesses. They would want to see some form of structure in place of which
registration is crucial foundation.
7) Contract bids – Registration is usually an important eligibility criteria for contract bids in most public and private institutions. There
are several other criteria such as up-to-date annual and tax returns but these cannot even be achieved without first having the business
registered.
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Registering your business is best left to a business registration service who has experience with the required paperwork needed. This will streamline the process and allow your company to be registered as
quickly as possible.
It’s an investment that doesn’t appear to have a direct return on investment but much like
insurance, it’s necessary for the protection of you, your family, and any partners who may be
associated with your business.
These are the few among the many reasons why you should register your business. NEXT IS REQUIREMENT FOR BUSINESS REGISTRATION.
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Thank you Nairatrace for this awesome post.
ReplyDeleteI think that asides the fact that we all need to look at the positive sides of registering, there is also need to alight where we might face challenges where registering the business.
All in all, I am sure the positives outweighs whatever challenges one might face in the course of registering. I am registering my blog straightaway!
Apt Post
Great tips always on this blog. Thanks for teaching and sharing.
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