Registering a business is important because it gives you the right to operate the business as well as legal recognition and a good reputation. Also, it’s protects your business name from being imitated by a new established business in a competitive market. Business registration comes with lots of benefits and here in this article I will be listing some of the essential ones.
SECURES THE NAME OF THE BUSINESS:
This is the important part of business registration because it ensures that your business name is not registered by another person.
TRUST FROM NEW CUSTOMERS:
New customers can be skeptical about a business organization on first approach. When a business is legally approved. Its gives your new client an assurance that your business organization can be trusted thereby attracting them to do business with you.
THE EIN (EMPLOYER IDENTIFICATION NUMBER):
An EIN (Employer identification number is a unique number use for tax purposes and will ultimately help in keeping the business regulations, legal and financial matters in order. For example, EIN is used to distinguish the BOSS from the Employee. If you are in the process of starting a business, it’s likely you will need to hire an employee or employees to work with you. The number establish your business as a separate entity from yourself (the owner of the company) and your employees.
ESTABLISHING BUSINESS BANK ACCOUNT:
To open a business bank account you need to prove that your business is properly registered and approved by the government. A business bank account is used for business transactions only! It helps you to separate your business transactions from your personal finances. Business bank account is a financial asset used to secure business cash or bank deposit. Professional business owners give out business name to their customers instead of their full name for payments purposes.
TO GET LOAN:
An impact of “owning a business” is transparent in many aspects of life- but to obtain ownership is the ability to fund a business. The development, quality and services of a business is regulated by the amount of funding and resources incurred. Availability of funds enhances the business (How it works)
Marketing and advertising: A quality product or service drives traffic to your business, this is possible if you are financially stable. Moreover, the expansion of a small scale business into bigger one doesn’t happen by a miracle, its dependence is on the financial ability. How flamboyant are you to fund your business and attaining your goals. A LOAN can be considered!
What is a Loan?
A loan is a money borrowed, used for an urgent purpose which will be returned with added interest.
To apply for commercial loans to finance your business, as an individual or organization you will need to prove that truly a business. Business registration is required by lenders and investors along with other valid applications.
Register your business today!