Are you thinking about registering your business? Registering your business is a big step and it can make your company look a lot more official and trustworthy to your customers and clients.
It is a good decision that gives you so many benefits. If you have been hesitant to legally register your company, here are a few reasons why you definitely should.
Start a Business Bank Account
One of the main reasons why you should register your business is that it will help you to gain access to a business bank account. Once registered you will get an EIN number for tax purposes. If you live in Ohio, you can get your Ohio EIN number from this website.
Having a business bank account helps you to separate your personal finances from your business finances.
Legally when you register your company as a limited liability company you will protect yourself in case there is a lawsuit brought against you. Many small business owners cannot foresee the day when a lawsuit is brought against them, but it often happens.
When you have a limited liability company or your company is registered as a corporation your personal assets cannot be touched.
Only the money that is in your company can be used to pay off a lawsuit. Registering your company provides a great way for you to protect your personal finances.
Get Access to Loans
When you register your business legally you get access to loans. You will be able to apply for business loans as lenders and investors will see that you are a legitimate company that is registered.
If you want to apply for a business credit card then lenders will also be able to see that your business is legal.
Improve Your Reputation
One of the major things that registering your business will do for you is that it will give you more respect amongst your customers.
Customers want to know that they are dealing with a business that is trustworthy and reliable. When you register your company you are showing them that they can trust you.
You Can Hire
Another thing you gain from registering your business is being able to employ people. If you are a small business owner and you currently work alone, in the future your business may grow and you may want to employ people. You will already be prepared to do this when your business is legally registered.
With registration and tax identification number, you’ll be able to pay your employee’s taxes. This is why it is always best to register your business before you start searching for employees.
Register Your Business
As you can see there are many benefits that you will get from registering your business. Registering your business with your state is a great way to legitimize your business.
It will help you to be accountable to the IRS for your taxes. You will also protect yourself should you be the subject of a lawsuit in the near future. When you look at all the other benefits that you get, it is always best to register your business sooner rather than later when you have a small business.