Having a business is a good idea but having the business protected is something better to deal with. Registering your business registered with some legal companies saves you the headache of future continuity. If you have been running unregistered business for sometime then you have been making mistakes for your business as a whole. There are different types of business a formation which exists and you have all the reasons to register them at any registration offices. In this article you will get an insight of some of the reasons why you should register your business entity.
Registration gives you unique identity. When your business has good identity then you can surely have the best feeling and some pride it comes with. Your business will legally exist once you have decided to give it a registration number. When registering a business you must have the name in it. The creation of the names comes with unique styles as some people will consider having the name of their father or wife to it. It is always up to the business owner when choosing the business name to have in place. When registering, the registration office will ensure there is no any other business which exists with the same name. This is important as it will not confuse the public.
Registration will protect you from the personal liability of business. With personal liability, it is one of the main reasons why people register their businesses. Businesses are legally protected and if anything goes wrong you might lose your business. This can be when someone sues your business to court for causing some damages to the public. You might lose your business when the case goes wrong on you. The damages caused by your business can surpass the earnings you get from the business hence you might end up getting sued and later your business get closed. If you registered it under limited liability then it is only you who will be responsible for paying of the damages caused.
Registration makes you and the business look serious and will attract more customers. In the today’s world customers always expect the business they attend to be registered under a name. Most serious companies will not do business with unregistered business because they will be risking the life of their company existence. It is always a bad idea and tax treason when you decide to do business with some unregistered business. Unregistered business will not even be able to issues receipts to customers and account for customer’s plea.
When a business is registered then it can be able to get credit from banks and even some from investors. Banks always offer different categories of loans which is business loans and some personal loans. This is totally different kinds of loans and cannot be used to represent each other in any way. Banks will be willing to give you loans to buy a house and even cars but for unregistered business they don’t give loans of such and can be declined without the business number in existence.