The Importance Of Registering Your Business
The registration of a business is not just another financial aspect of the company; rather it’s a long term assurance of its credibility and success. The list below highlights the main reasons of why it is important to register your business.
Publicity: Registered businesses gain more publicity in the industry. This is because they have established credibility not only to their clients but to the government and locality in which they support. The existing clients of a registered business will continue to support the company and gear it to its success. The potential clients of the company on the other hand will find that a registered business is more reliable than one that is not. This is because they are aware of the company’s established credibility in the business world.
Ownership: One huge advantage of registration with state and local government is safeguarding your business name. No one else can register a business with that same name.
Financial benefits: You need to provide proof that your business is properly registered with the government to open a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities. It is also more professional to give your clients a business name for payment instead of your own full name.
Assurance: Customers and clients, especially people you’ve never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a “fly-by-night” operation if your company isn’t properly registered. When a business is on file with the state, it could put your clients at ease when making a decision about whether to spend money with your company.
Discounts: A registered business also makes you eligible to receive supplier discounts that you wouldn’t normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the government. Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.
Hiring of employees: A business registration allows you to hire full-time employees and pay them in accordance to state laws. When you register your business with the state you’ll receive a state identification number that allows you to route state taxes on the employee’s behalf. So if you plan to hire on employees to your business, it’s best to take care of registering your business with the state before you even start the search for workers.
