“All humans are entrepreneurs not because they should
start companies but because the will to create is encoded in human DNA”. Reid
Hoffman[1].
“Your reputation is more important than your pay check,
and your integrity is worth more than your career”[2].
“It’s not about ideas. It’s about making ideas happen”.
Scott Belsky[3].
With the
state of our economy and the increasing
rate of unemployment almost everyone has a business to make ends meet. The question
is how many of these businesses are actually registered. Most people prefer to
just start the business first then register later while some think registering
a business is just for formality sake, yes, it may be a mere formality but
there are a lot other reasons why you should register that business of yours as
soon as possible.
Legitimacy
and authenticity: registering your business validates your business, it gives
it authenticity and reputation. It gives customers the confidence to do
business with you and shows them you are serious minded.
Tax identification
number: when you register your own business, you are entitled to a tax
identification number which enables you pay your tax as a good citizen.
Enforceability
of contracts: when you register your business, then you can enforce any
contract entered into with such business name. moreover, you cannot get a
government contract if your business is not registered.
Unique
identity: registering your business gives you the legal ownership of that name,
it helps avoid duplicity of company name as no other person can do business
with that name or a name similar to it, it becomes your brand, it differentiates
you from competitors.
Have a corporate
bank account: if you don’t register your business, you cannot own a corporate
account. A corporate account as a business man gives you an edge over other
competitors who are not registered because you can issue a cheque in the company
name, customers and clients feel more comfortable paying money into the company
account than personal account. Also a corporate account will make it easier to
get bank credit and investment from investors.
Protects from
personal liability: registering your business protects you from liability to an
extent as you won’t personally liable for damages incurred by the registered
business.
Continuity:
registering your business ensures the business continues to exist long after
you are no more.
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