If you intend to start a new venture or want to grow your existing sole-proprietorship, you must consider registering your company. Though registering a company is a big step, you will reap many benefits of engaging in trade under a corporate or company structure. Setting it up may be complex, but you can hire a Business Registration Services team to help you deal with the tedious paperwork. Though you will be paying a small fee, it is well worth it as you don’t have to stress every detail. With this service, you can focus your attention on your business. Besides, registering your business assures you can reap the following benefits:
Protects Your Assets
The number one benefit of registering a corporation or company is that it limits your personal liability. As a sole-proprietor or partnership, you take full responsibility for your business. This means in case it incurs losses or debts, you will have to cover for it from your own personal assets. This also includes paying for penalties if someone sues you in court for a defective product you’ve sold. Running a business has its risks, but you do not put your personal assets in danger with a registered company. After all, a company is considered a separate legal entity, so all your liabilities are attached solely to the company.
Potentially Lessen Tax Liabilities
If you conduct your business as a registered corporation, you minimise your tax liabilities. In Australia, the tax rates for companies is significantly lower than the going rate for an individual. As a sole trader, you will be levied higher rates. However, as a company, you can enjoy cheaper rates and a whole gamut of tax deductions. For example, you can include advertising costs, education expenses, and even repairs/ maintenance fees. As you can see, setting up a company with the help of a Business Registration Servicesteam works to your advantage.
Fosters Authority and Credibility
When you take a look around you, the biggest brands are all registered companies. If you want your venture to be truly successful, you need this kind of structure. Furthermore, with registration, you build up your company’s reputation, building customer trust. With this, people are most likely to recommend you to their friends and family. With registration, you don’t just boost your company’s credibility; you also increase brand awareness. Besides, most established companies also prefer working with a business that’s registered. If you want to level up your brand, registration is a must.
Attracts Investors to Generate Capital
As a registered company, it would be so much easier to attract investors to raise capital to grow funds for your business. Furthermore, registrations assure you can borrow from financial institutions swiftly. You can also try selling shares to raise equity capital. Keep in mind; the ability to raise money is crucial for your business’s growth and development. To attract the right investors, you need this formal business structure.
Assures Perpetual Life
Finally, one of the major perks of registering your company is it assures perpetual life. In the case of a sole trader or partnership, if the founder dies, the company ceases to exist. However, in a formally registered corporation, the company itself is a legal entity. This means even if the founder’s pass away, the brand continues to live on as a legacy.
