Author: Shannon Hanes
Are you an entrepreneur contemplating whether it is beneficial to register your business? I have good news for you.
In this article, you will discover the top six benefits of business registration.
Let’s get started.
1. Getting Loans
Before applying for a small business loan, you must prove that you run a credible business. Lenders and investors will request to view your business registration certificate and related documentation before they can grant you a loan.
Applying for a loan with a registered business owner is easier because it demonstrates your company’s trustworthiness, and encourages trust with investors and lenders.
2. Opening a Business Bank Account
You must prove that your business is officially registered with the government before opening a business bank account.
Because it allows you to segregate your personal and work finances, a business bank account is an excellent tool for a small business.
It is also more professional to give your clients and customers a business account for payment rather than a personal one. The Small Business Administration (SBA) provides instructions for creating a bank account.
3. Hiring Employees
A business registration permits you to hire full-time employees and pay them a salary following state rules.
A registered business gives you the liberty to have federal and state tax ID numbers that will allow you to process taxes on behalf of your employees.
As a result, if you intend to hire staff for your company, you should consider registering your company first.
As a registered business, you must have an employer identifying number (EIN) with the IRS and the state where your business is located. This confirms the legitimacy of your business entity as a legal and tax-registered operation.
It also ensures that your company conforms to accounting and bookkeeping legal norms.
Running a tax-paying venture also allows you to have access to state and federal business loans. Aside from that, you will be qualified for grants and benefits the government offers business owners or ventures.
5. Reputation with customers
One of the most important reasons to register your business is to build trust with your consumers. Your customers, particularly new ones, require assurance that you are a trusted brand.
Potential customers may be wary of doing business with you if your company isn’t registered.
However, if your company is officially registered, customers will see your venture as a reputable brand they can trust.
6. Working with suppliers
When you register your business, you will gain access to discounts from suppliers that you may not have had access to if you run an unregistered business.
Suppliers frequently reserve wholesale rates for enterprises that can provide formal state paperwork. Also, if you want to acquire government contracts, your business must be registered.
There are numerous advantages to registering your business, ranging from tax benefits to supplier discounts and building confidence with your clients. Taking the first step toward business registration can be quite difficult but beneficial in the long run and establish an identity for your brand.