When people think of business success, money comes to mind. However, the reality is that business success depends on a lot more than just profits.
Registering on time is one of the best ways to ensure your company’s success. Here is how to register your business and the top company benefits of registration.
Legality
Among the essential benefits of company registration is that it establishes your business as an official corporation with limited liability. This means that you will only be responsible for the debts incurred by the company and not your assets. It also enables you to open a corporate bank account and secure a loan from lenders and investors as a listed firm.
Additionally, registering your business will put you in a better position to receive supplier discounts only available to registered entities. Most importantly, customers will be more likely to trust your business if it is legally established and can be trusted.
This is especially important for e-commerce, where its name’s legitimacy often determines your business’s credibility. This is why registering your company is so crucial. The type of business registrations you need to file depends on your state’s requirements and can be as simple as an article of incorporation for a limited liability company or a DBA for a sole proprietorship.
Taxes
A registered business can receive a tax rebate and benefits that non-registered firms cannot. Suppose a new company wants to raise money from investors. In that case, it has to be registered because most people prefer to invest in a formally structured business rather than an unstructured one.
The process of business name registration for your business as an incorporated entity requires the filing of various documents. These vary by state and business structure. For example, corporations file a Certificate of Incorporation, while limited liability companies file Articles of Organization.
A business registration also allows you to open bank accounts and route payroll taxes by state laws. It also makes you eligible to receive supplier discounts that unlisted companies still need to get. In addition, registered companies can be inherited by their owners or sold to other entities. This flexibility increases their value and gives them more clout in the market. In short, business registration is necessary for any company that hopes to grow and become a global brand.
Brand Recognition
When you build brand recognition, your customers and clients know your company is legitimate. It puts their minds at ease and makes them more likely to buy from you.
Generally, registering your business name happens as part of writing a legal entity such as an LLC or corporation. However, sole proprietors can register a DBA (doing business as), and it is often worth the investment to protect your brand.
You can check the state of New York’s website for business registration to ensure you are not duplicating a name with another entity and to look up potential trademark issues.
Also, some lenders require you to provide proof that you are a registered business as part of the application process. Writing your business will help put potential lenders at ease and show you are serious about your company. They will want to see your company registration certificate and other business documents when assessing the eligibility of your small business for loans and investments.
Customer Trust
Customers’ level of trust in your company will determine how long they stay loyal to your brand, even when faced with competitive alternatives. The most successful businesses prioritize building customer trust, which requires a customer-centric approach to all business processes and operations.
In most states, you must register a legal name for your business before beginning operations. This helps protect your business from other companies with similar names. For example, if you write a company called Captain Mark’s Seafood and another New York business already has the same name, you might be sued for trademark infringement.
Depending on the company type, you must also register your business’s legal structure with the state. For instance, if you are an LLC or partnership, you must file Articles of Incorporation with your state’s secretary of state office. However, you only need to register your legal name if you’re a sole proprietor.
