Starting a business involves a number of activities which can be quite cumbersome. Most people want to get started, find a customer and move on. But there are a lot more benefits if one starts right the first time. We list some of them below:
- You get to comply with some of the requirements of bigger potential clients
- You get to have a legal entity with a limited liability, meaning you stand to lose only what you invest in the business and not your personal assets.
- Your registered business is a legal person, which means it can sue or be sued in its own name. When you trade with your own name/ID number, there is no distinction between you and your business.
- You get to open a bank account in the name of the business and build a record of transactions which may become handy when you need to convince prospective funders or creditors about the health of your business.
- You have a professional image which gives people comfort that they can trust your business since it has all the necessary registration and compliance numbers.
- You qualify for assistance by many small business development agencies which do not help informal businesses.