Your small business will soon get more customers, and the brand that you have started will spread across the country and even the world. If you are planning to expand, you may be thinking about starting a company.
From the start, it may look like a big step as there would be a lot of things to do. You can easily register a company using a simple online registration where you can get your documents within minutes.
Here are the perks of registering your company.
It would save your assets from your business’s liabilities
If you own a business, or probably a part of a partnership, all your business aspects are your responsibility. This includes your business’s losses and debts. Moreover, if your business fails to deliver excellent service or has sold a defective product, it will be your liability.
Conversely, if your company is registered, your business is going to be a separate legal entity. It will protect your assets from your business’s issues. Your company’s debt can never be attached to you, allowing you to focus more on growing your business.
It lessens your tax liability
The tax rate for an individual is higher compared to the tax rate for companies and small businesses. As a sole proprietor, you are taxed as an individual aside from your business’s tax.
You will be likely to pay a smaller tax as a company, depending on your company’s revenue. Moreover, a company is entitled to some tax deductions for training, education, maintenance and repairs, and advertising.
It helps you avoid conflict with your co-founders
It will be a great help if your company is registered in cases of conflict among your business partners. By registering a company, the owners can control it according to their shares. Moreover, the number of shares will also determine who has the power in decision making.
Furthermore, companies can separate the management and ownership of the business. There could be several owners who own shares and appointed managers who don’t own the company. This way, expert professionals can run the business and generate profits for the owners.
It will help your brand reach more consumers
The world’s biggest brands, such as Apple, Samsung, Nike, Ferrari, etc. are all registered. A company structure is needed for your business to become successful.
Registering your company improves your business’s perception and reputation. A registered company is its own entity, running separately from you. Also, you will be accountable to ASIC and operate under an ACN or Australian Company Number.
Furthermore, most businesses only hire or deal with registered companies, so if you need or plan to deal with other companies, you must register yours. Aside from that, any contracts will have your company’s name, instead of your own.
It will help you raise capital
If you register a company, you will have the ability to attract more investors, helping you raise money for your business. Moreover, it would be easy for you to get some loans, raise equity capital, and sell shares with your registered company. Raising money is essential for the expansion and development of your business.
Registering your company is the best way to expand your business, ensuring its success. Moreover, it would help you separate your personal from your business liabilities, pay lower tax rates, and let you focus on growing your business.
Author Bio: Alice Churchill is a copywriter and content strategist. She helps businesses stop playing around with content marketing and start seeing the tangible ROI. She loves writing as much as she loves the cake.