Essay On Why Is It Important To Register Your Business

1540 Words 7 Pages
WHY IS IT ESSENTIAL TO REGISTER YOUR BUSINESS

An organizational entity that provides goods and services to the consumers is termed as business, also known as an enterprise or a firm. Business may be

PROFITABLE
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Non- profit enterprises can be social or state owned with specific social objectives.
A particular organization or the entire market sector can be referred as business. The goal of every business is :-

SALES > EXPENDITURE => PROFIT

One fine day , anyone can decide to be an entrepreneur by start operating as a business. All that person has to do is provide a product or service to another person that incurs a profit to be " in business". Now the question arises " Do I need to register my small business? " Well!!! The reply is "YES" . Registering a business includes registering your company name as trademark, filing for an Employer Identification Number (EIN). It’s a misconception that there is no need to register your business , simply file your first tax return for the
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Receiving some legal liability protection is another advantage of registration. Once registered you are not personally responsible for company 's well being which makes easy to obtain business insurance or attract investors.

# GETTING LOANS :

One has to prove that you are actually a business when you apply for a business loans. Business registration along with other application requirement will be sought by investors and lenders before approving a loan. If one applies for a credit card as a business, creditors may also ask for registration paperwork.

# OPENING BUSINESS BANK ACCOUNTS :

A business bank account cannot be opened without the proof that the business is properly registered. A business bank account is an important asset to a small business in order to separate business and personal activities . To give the clients a business name for payment is certainly more professional than providing the details of a personal account.

# REPUTATION WITH CLIENTS AND CUSTOMERS

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