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5 Reasons You Should Register Your Business

Registering your new business may be the least of your priorities when you're first starting out. Most new business owners think that they should wait until they "have more clients", "sell more products", or "their business is bigger". However, registering your new business as soon as you begin is surprisingly beneficial.

Not registering your business when you start it can have a negative impact on your success in the first few years of your business - and these years are the ones that matter most. As a business coach, this is the first step that I recommend all my clients take if they are serious about succeeding as entrepreneurs.

Keep reading for my top five reasons why you should register you business.

Reason #1 Legally Protect Your Business Name

Registering your business provides you with the legal protection to use your business name and to prevent anyone else from using it. A huge setback for many new business owners occurs when they choose a name that they love, begin to use it, invest in marketing materials to build name recognition, and then later discover that the name is already taken. You do not want to put yourself in this position of having to choose a new name and rebuild recognition and clientele.

Reason #2 Receive Necessary Tax Benefits

Registering your business allows you to access tax benefits, such as deductions for business expenses. Starting a business is expensive, and you can maximize your investment by registering your business right away. Most start up expenses are actually tax deductible, which is something many new business owners are unaware of. Lower your end of year tax bill by deducting all of the money that you put into your business to get it going - classes you took, licenses and permits that you paid for, marketing materials, and more. This is only possible through business registration.

"If you conduct business as yourself using your legal name, you won't need to register anywhere. But remember, if you don't register your business, you could miss out on personal liability protection, legal benefits, and tax benefits." – Small Business Administration

Reason #3 - Establish Credibility

Registering your business will help you to establish credibility with customers and business partners, as it demonstrates that you take your business seriously. The best example is the options you have for collecting payments as a registered business versus non-registered business. As a registered business you can access programs like AfterPay that allow you to offer your customers installment plans for their purchases, you can open business accounts with companies like Amazon, and you can set up business digital payment applications like Zelle or Venmo. When you business is not registered, you have limited access to these tools and when you use your personal accounts instead your clients may feel that you are unprofessional or unreliable.

Reason # 4 - Access to Business Loans

Registering your business makes it easier to secure financing, such as business loans or lines of credit. This is especially important if you are trying to increase your business capital for investing into your business in the beginning. Credit lines and loans can help you purchase equipment, supplies, and other business tools that you would otherwise have to pay out of pocket for.

Reason # 5 - Build Professional Relationships

Registering your business will help you to take advantage of networking opportunities and build strong professional relationships. While some may not consider this last reason important, consider what a relationship with your local city of commerce and other local groups could do for your new business. Furthermore, registering your business will allow you to access groups, attend conferences, and other networking events that could lead to more visibility and sales.

At the end of the day, you cannot expect anyone else to take your business seriously if you don't.

If you have already started a business or plan to, make sure that you register it as soon as possible. You can contact us here to help you get started.

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