When people begin a new business enterprise, it is important to them that they remain in full control and so this is why many of them decide to set themselves up as a sole trader because they feel this is the best option that is currently open to them. There are literally thousands of sole traders all across the country and they are thinking exactly the same thing as you are. Many people don’t realise that they have very limited protection when it comes to being your own boss and registering your business as a partnership or as a sole trader. Your personal assets are in jeopardy if your business should run into trouble further down the road and the courts can come looking for your home or your car and there is pretty much nothing that you can do about it.
This is why company registration is so important and why governments push for businesses to register themselves because they want to provide these new businesses with the protection that they need. It is not really that difficult a thing to do and if you have no idea how to do it by yourself, then there are always service providers currently available to you that can help do all of the work for you and remove all of the responsibility off your shoulders and onto theirs. If you’re still not sold on the idea of registering your company and you still want to maintain your current status, then maybe the following benefits of doing so can help you to make a smarter business decision for both you and your family.
- Opportunities to raise capital – As a sole trader, you have probably found it incredibly difficult to get someone else to put money up to invest in your business. The opposite applies when you register your company because then investors become a lot more interested because they know that you are a real registered entity. Similarly if you want to go to a bank or building society to borrow some money to expand your business or to add solar panels then they will only talk to you when you have a registered company. If it is your hope to expand your business and even to branch out into other towns and cities, then the first thing that you need to do is to register your company.
- Improves your brand & reputation – As every business owner knows, your brand and reputation are everything and so anything that you can do to improve upon these, you need to do it quickly. Customers take businesses a lot more seriously if they are registered because it gives them the confidence to deal with your company because you have a company registration number that can be referred to and if other retailers want to buy products from you or services, they will want a VAT invoice.
As was mentioned briefly at the beginning, in the unlikely event that your business might run into trouble in the future, it is important to protect you and your family by making sure that the courts cannot take your personal belongings like the home that provides you with a roof over your head.