There was a time when all humans needed were animal skins to wear and food from the farm, all of which they could provide for themselves. Well, things began to change, and since there was no currency/ legal tender, buying and selling was done by trading A for B (trade by barter). As things became more complex and nearly everyone started getting involved in business, there was a need for the government to keep things organized by requesting businesses to be registered.
Surprisingly, most of the businesses you see around today are not registered. They probably think: ‘what’s the use? To give the government more tax?’
While there are different types of businesses, registering your business has lots of benefits that will save you unnecessary expenses down the road.
Still skeptical? The following reasons why you should register your business, with a site like LegalZoom, should convince you.
- Unique Identity
Having a business idea remains an illusion until you take steps to register it. Registering the business idea makes the illusion a reality, makes it something tangible. You’re now proud to tell anyone anywhere that you have a business.
The first thing you do when registering your business is checking for the availability of your business name. No two businesses have the same name. Also no two businesses are allowed to have similar names that could cause confusion. One unique name to a business. So even though 100 persons are into the business of ice-cream making (caveat: I love ice-cream!), each must register with a unique name.
A registered business will give your business partners assurance that you’re a credible person to do business with.
A registered business can issue checks, bills, invoices, receipts, etc. Getting a small loan from the bank for your business can only happen if your business is registered.
Imagine you’re an investor looking for a viable business to invest in, I can bet a million dollars you won’t invest in a business that isn’t registered no matter how promising the business looks.
- Copyright and Branding
To understand the concept of branding and copyright, this short analogy should help.
I make quality hats in my neighborhood. In fact, nearly all the hats in that neighborhood were made by me. My name is Rose, so people refer to my hats as ‘Rose Hats’. I also go to the nearest towns to sell my hats. I have lots of loyal customers who look for ‘Rose Hats’ in stores I supply my hats.
My business is not registered.
Suddenly one Dave starts making hats and registered his business ‘Rose Hats’. Now my customers are confused, it’s difficult for them to differentiate my ‘Rose Hat’ from Dave’s ‘Rose Hat’. I’ve decided to sue Dave, but my lawyer just told me I have no chance of success.
Rose would not have been in this situation if she had registered her business earlier before Dave. To resolve this situation would definitely cost her customers and resources!
Registering your business requires submission of a business logo. Once registered, you own the trademark copyright for the logo. No other business can use it. That’s branding that stays with your business for life.
- Shielding from personal liability
Depending on the type of business you register, registration means you will not be personally liable for your business loss. Your personal assets would be safe in event of bankruptcy.
- Continuity and Perpetuity
Apart from sole proprietorship and partnership, a business once registered enjoy perpetual existence. That is they can survive generations. Looking for an example? The Rothschild banking business. The founders have long passed away with about four generations after them.
Better be safe than sorry, so register your business right away!