It is the goal of every new business owner to be able to conduct business with the bare minimum of obstructions. They definitely do not want to get caught up in all of the paperwork and the various hurdles that have to be overcome in order to be successful and in order to increase their profits. They want to take the easier path and so many choose to remain as a sole trader and this is their first big mistake. Staying as a sole trader leaves you and your business open to all sorts of complications and your personal assets are in jeopardy if your business were to run into trouble further down the road. Governments are always pushing for businesses to register themselves and people wrongfully think that this is just red tape drawn up in front of them which is designed to make life more difficult. The opposite is in fact true and by registering your business, you are taking your first steps in the right direction.
If you’re unsure about how to go through the process, then there are excellent service providers that can do the new business registration for you for the purpose of protecting your business and protecting your interests. You have worked hard for everything that you have until now and so it would be a real shame to lose all of it because you were not schooled on the benefits of registering your new business.
– You pay a lot less tax – New business owners wrongfully think that if they operate as a sole trader or as part of a partnership then they get to pay less taxes on the much larger enterprises. The opposite is in fact through and registered businesses pay a lot less tax than you or I, for example. The government has made it easier for them to conduct business, make changes and they also allow them tax breaks so that when they spend money on things that are designed to improve the business then they can claim these back as a tax deduction.
– Your liability is limited – This is essential if you are to protect yourself and your family members from future ruination. In the unlikely event that your business does run into difficulties and you are unable to pay people like your suppliers and your wholesalers then the court may award them the costs and so the costs have to be recovered from somewhere. If your business is not a registered enterprise then they can confiscate your personal assets like your family home and your car in order to pay the bills. This is not a situation that anyone wants to find themselves in and so doing something as simple as registering your business can provide you with the peace of mind that all new business owners need and want.
These are only two of the reasons why you should register your business and if you haven’t done it already then get it done as soon as possible. Talk to your local service provider who will guide you through what needs to be done and they will do the vast majority of the hard work for you so that you don’t have to.