Starting a new business venture requires plenty of hard work. You need more than a persuasive business idea to make sure that your business will succeed. You must have a clear business plan, find trustworthy suppliers, and build a dependable team to help you run your company. But before you can start to operate and start offering your products or services, the first thing that you must do is to ensure that you accomplished all the steps to register a business.
Yet some business owners choose to neglect to do this crucial step in starting a business. Some have no time to go to the business regulating offices, while others do not understand the importance of registering their business. Meanwhile, others choose not to register their companies to avoid paying for the necessary permits and certificates.
But if you are thinking of starting a new business soon, you must understand the need for registering your business. Here are several reasons why you must never neglect registering your business before you begin your operation:
Reason #1: To Give Your Business a Unique Identity
One of the best things of having a business that you built by yourself is the pride that comes with it. If you register a business, you will enjoy the distinction of legally owning something that used to exist as a big idea in your head. You can designate a name to your business and register it to set it apart from your competitors.
If you are ready to register your business name in Australia, you must check with the Australian Securities and Investments Commission to understand the requirements that you need to submit. You must also ensure that the name that you have chosen is still available since no two businesses can operate under the same name.
Reason #2: To Protect You From Personal Liability
One of the best perks that you can get from registering your business is having legal protection from any liability in case something goes wrong. For example, someone sues your business for major damages.
If you do not register the business, you might lose both your business and personal property since you are not registered as a limited liability entity. But if your business is registered, only your business is legally liable for paying the damages because you are a separate entity from your business.
Reason #3: To Attract More Customers
Nowadays, the customers are more conscious about the legality of the companies that they deal with to avoid getting scammed. It is the reason why they only transact with registered businesses.
Customers require getting valid receipts as their proof of transactions. It will serve as their protection against fraudulent products or shady services. If you cannot provide valid receipts, your target customers will be wary of investing in your offers.
Reason #4: To Get Bank Credit and Investments Faster
Banks offer two types of loans for their clients. The first one is a personal loan, while the other one is a business loan. It will be easier to apply for a business loan if you register your business. Investors are also very particular in the legality of an enterprise before they release any amount of money for investment.
They need to get an assurance that they will only finance valid business entities. If your business is not registered legally, you will not get any help from these investors. These are just some of the main reasons why you must allocate enough time to register your business. It will offer you plenty of legal coverage and protection that you will need to keep your business afloat and operate legally in your country.