If you are starting a new business here in Australia then congratulations are for you, because you are now taking your first steps to financial independence. You have probably not even thought about what kind of business entity that you would like to be, but you have heard people talking about being a sole trader and this sounds like the right option for you. You probably think that you will pay less tax as a sole trader but the opposite is actually true.
This is one of the reasons why you really need to look into company registration to make sure that you protect everything that you are going to be working hard for over the coming year or longer. By going through the whole process, you’re making sure that your business name is protected and that people see your new business as a proper legal entity that is here to stay. At the moment, you are busy trying to set up the whole business and to get new customers, and this is why it makes sense to reach out to a provider that can do the registration for you.
If registering your business has been on your list of priorities up until now, the following are some of the reasons why it’s important to put it into place.
- It provides legitimacy – You want to be able to grow your customer base in order to be able to increase your profits, but you can’t expect people to trust you with their money if you’re not taking steps to register your business to give them peace of mind. It makes it easier to deal with wholesalers if you are in the retail trade and it allows you to be able to take advantage of certain promotions also.
- It protects your business name – Once your business is registered then the name is registered as well. You would be surprised at the number of businesses that have to take others to court because they have opened a store and used the same name or a similar name. During the registration process, the name that you choose will be vetted to make sure that nobody else is using it. There would be nothing worse than doing all of the hard work and then finding that you have to change the name of your business further down the line.
- Business funding is easier – The hope is that your new business enterprise will be a complete success and you will want to expand further. Most likely, you will have all of your money tied up in stock and you might have to reach out to investors or financial institutions to get the money that you need to grow. If you are not properly registered, they will be reluctant to do business with you.
Credibility is incredibly important in the modern business world and registering your business will give you that very thing. It also makes it easier to hire people to come work for you.
