Starting a new business, as long as you have the money to do it, seems quite simple. However, it’s not true at all. If you really want to make your business go, you have to register it first.
And, that’s what we are going to talk about in this article. So, without making any further ado, let’s begin. Oh, and we will also tell you why you should register your business ASAP.
So, buckle up!
Why Do You Need to Register Your Business?
There are several reasons why you have to register your corporation before beginning any sort of operation through it. Let’s keep reading to know more about it.
1. Legal Protection
Registering your business provides legal protection. It separates your personal assets from your business liabilities. It means that if your business faces financial trouble, your personal savings and property are not at risk.
Note: As per the news, unregistered businesses can face personal liability for business debts, which can result in financial ruin for the owner.
2. Building Trust
Customers and partners tend to trust registered businesses more. It shows that you’re serious and committed to your venture. It also adds credibility and professionalism to your brand.
Note: A survey has found that 84% of consumers trust small businesses more when they are registered.
3. Access to Funding
If you plan to seek financing or loans, most banks and investors will require your business to be registered. It’s a crucial sign that you’re operating within legal boundaries which makes you a safer bet for lenders.
4. Tax Benefits
Most of the registered businesses often enjoy tax-related benefits or deductions that aren’t available to unregistered ones. This can lead to significant savings come tax season.
Note: The U.S. Small Business Administration states that registered businesses are eligible for various tax incentives, like –
- Deductions for health insurance,
- Retirement plans, and
- Business expenses
5. Brand Protection
Registering your business name and logo protects them from being used by others. It is highly important for establishing a unique brand identity and preventing potential confusion in the market. Otherwise, your preferred audience might prefer another brand over you.
Note: As per research, trademark registrations have been increasing globally, indicating the growing recognition of the importance of brand protection.
How Do You Actually Register Your Business?
Business registration is like giving your business an official identity. It’s the process of legally establishing your company, making it recognized by the government and ensuring it complies with all the necessary regulations. But, how do you really register your business?
Let’s find out more about it.
Step – 1: Choose a Business Structure
Decide if you want to be a sole proprietorship, partnership, corporation, or LLC. Each of them has its own benefits and legal implications. So, make sure to go through everything, talk to an expert, and try to choose the option that goes well with your entrepreneur personality.
Step – 2: Choose a Business Name
Pick a unique and memorable name for your venture. It needs to be something that is easier to remember for your audience. Also, make sure it’s not already in use by another business. You can find more about it in the registration book of businesses.
Step – 3: Register with the Government
Depending on your location, you’ll need to register with the appropriate government agency. This might be a local, state, or federal office. You have to visit the place during the daytime to start your business in Singapore. Or else, you may need to wait for the next morning.
Step – 4: Obtain Required Licenses and Permits
Depending on your business’ industry and location, you may need specific permits or licenses to operate legally. So, you must go to the business authority of Singapore and get whatever you need from there. Make sure to answer their questions accordingly too.
Step – 5: Get an Employer Identification Number (EIN)
An EIN is like a Social Security Number for your business. It’s used for tax purposes and is often required for opening a business bank account. Also, if you are going to the authority for some sort of help for your business, you have to provide this number. So, don’t forget it.
Step – 6: Set Up Business Accounts
Now, you are ready to create a new or separate bank account and credit card for your business transactions. This might help maintain clear financial records. Also, as you have a different account, it will be much easier for you to manage your finances accordingly.
Step – 7: Comply with Tax Obligations
Understand and fulfill your tax obligations, such as income tax, sales tax, and employment taxes. This will help you build a rapport with the government rules and make it easier for you to operate your business accordingly.
The Bottom Line
Registering your business is not just a legal formality; it’s a significant step toward building a successful, sustainable venture.
It offers protection, credibility, and opens doors to opportunities that unregistered businesses might miss out on. So, before you set sail on your entrepreneurial journey, make sure to get your business officially registered. Good luck!