Benefits of registering a business

Clear advantages exist to registering a business, in some cases registration is required for tax purposes or to be legally allowed to operate.

Establishing Business Bank Accounts

You need to provide proof that your business is properly registered with the state to open a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities. It is also more professional to give your clients a business name for payment instead of your own full name.

Getting Loans

When you apply for small business loans, you're going to have to prove that you're actually a business. Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan.

Reputation with Customers

Customers and clients, especially people you've never worked with before, need assurance that you are a legitimate business. When a business is on file with the state, it could put your clients at ease when making a decision about whether to spend money with your company.

Supplier Arrangements

A registered business also makes you eligible to receive supplier discounts that you wouldn't normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the state.

Hiring Employees

A business registration allows you to hire full-time employees and pay them in accordance to state laws. When you register your business with the state you'll receive a state identification number that allows you to route state taxes on the employee's behalf.

About Author: The author of this blog has a passion for writing and has submitted many blogs about company registration, copyright registration, intellectual property rights, trademark registration, legal services, LLP laws etc.