Why you need to Register your Business
Avoid Personal Liabilities. Incorporating your business eliminates most of your personal liability and risks. Your personal assets cannot be seized to repay the debts owed by your business.
Separate Legal Entity. Your incorporated business is deemed by law to be a separate legal entity. It has rights and privileges as a human person; can own property, carry on business, incur liabilities and sue or be sued in its own name.
Equity Financing. Your ability to attract investors and raise money for your business will be easier. Investors are likely to invest in a registered company rather than an unregistered business that has no formal structure in place. If your business is registered, you can raise money by equity financing, which involves selling shares in your business to prospective shareholders.
Reputation with Consumers. Your business reputation and prestige are enhanced. The registration of your business can suggest that the business has permanence and is committed to effective and responsible management. Generally, investors and consumers feel more comfortable working with registered businesses.
Hire employees. A business registration allows you to hire full-time employees and pay them in accordance with state laws.
Public Perception & Brand Credibility. Registering your company enhances your brand credibility and perception of your business. This has the effect of improving your business future dealings with third parties, as many businesses will only hire or engage with registered companies rather than individuals.
Limited Liability Company (LLC)
A business entity that legally separates your business debts from your personal assets.
Profits and losses are reported on the individual tax returns for the owners, and not at the business level. Taxed as a pass-through entity
Owners of an LLC are called “members,” and instead of shares, each member owns a designated percentage of the company
More flexibility in the way they are managed and usually have fewer recordkeeping and reporting obligations than corporations.
A business entity that legally separates your business debts from your personal assets
Corporation is taxed on corporate profits and shareholder dividends. ( Double tax)
Owners of a Inc. are called Shareholders or stockholders
Corporation can issue shares of stock to investors
Formal requirements for compliance and rigid management structure
To find out which registration is best for your business schedule a consultation