Your Business: To Register Or Not To Register?

If you are into arts and crafts, you might have heard people telling you to sell your stuff. There is nothing wrong if you decide to go that way, but there are some things you would need to know about before making a decision.

Setting up a business may seem like a daunting task, but as long as you know how to register a business, everything else should be relatively easy.

Why register your business?

Similar to getting a patent, starting a business keeps you covered. Your business ideas stay with you, especially if you get a particular idea off the ground and earn money because of it. Your government also recognizes you, so the laws of the land protect you and get you the benefits and rights that a duly registered business should have.

If in case something happens with your business, a registered business spells out what you would be liable for if the need arises. A registered business also shows potential customers that you’re serious about your work, and allows you to avail loans from the bank in case you wish to grow your business.

If your business is always in need of supplies, getting a discount doesn't hurt. Most suppliers would not do business with unregistered companies, especially if there is a need for government contracts. Therefore, proper business registration is almost always a requirement.

When should you register your business? 

As soon as you do your research about an idea or probably a product that you would like to sell, it is better to register the business as you have the funds. Establishing your ownership of your product, such as its idea and name, covers you from cases where people think of the same business name or a product like yours.

Requirements for registering your business

There are different requirements to register a business based on your location, but here are some general ones to note before going further. 

●      Business name. Think of your business as your baby. It'll be hard to consider your business yours if you can't figure out a name to go with it. Establishing your business name needs to be thought out and not something you do haphazardly. You would also need to do your research to avoid duplicity with an existing business of the same name. 

●      Location, location, location. Are you planning to work from home? Do you have the funds to get a separate location to focus on your business? Location is essential, especially if you want customers to know your business further. Deciding on the proper spot where you should start your business determines if you'll get the necessary foot traffic that you'll need for your company.

●      Other requirements. There are governments obligations that you need to take care of when you start your business. Better to visit your state government's website to get details of documents you need to submit, fees that you need to pay, see if there are required codes or identification that you need to have for your business.

You would also need to make sure that you keep records of your finances, transactions, and supplies because these are required once you need to pay for taxes.