Some of the main benefits of registering your business are:
Now let’s dig deeper. What do we mean?
1. You will limit your personal liability
As an individual running a business (a sole proprietor), you are legally responsible for all aspects of your business, including debts and losses. So if someone decides to sue you, they can go after your car, your house and anything you personally own. Why would you work so hard to start a business just to risk it all?
When you register your business, you create a separate legal entity which will be liable for debts and losses. This is an easy way to protect your personal assets from your business actions.
2. You will minimize your tax liability
Depending on how much revenue your business brings in, you will likely pay less tax under a company structure because companies are generally taxed at a lower rate AND you can reduce your taxable income by deducting all business expenses!
You can potentially deduct the costs of advertising, supplies, leasing or mortgage, education, training and repairs, maintenance, and the list goes
3. You are more likely to get funding and financing.
Registering your company enhances the reputation and perception of your business.
As a company, your ability to attract investors and raise money for your business will be easier. Registering your company gives you the ability to borrow and incur debt but more importantly, sell shares and raise equity capital.
Think of the biggest brands in the world today – Amazon, Microsoft, Google, Nike, Facebook. All of these are registered companies. For a business to be as successful and expansive as it can be, having a company structure is necessary.
So what are you waiting for?? Book a free consultation to discuss.