Starting your own business is already a big step towards success on its own. However, it’s not that easy to launch a business that’s legitimate and regulated. A lot of budding entrepreneurs don’t want to take the extra steps to launch a business properly, but it’s a big mistake to avoid doing so.
Once you have an idea of what your business is, what it deals in, and what its future is, the next major step you need to take is to register it. Believe it or not, registering a business is more than just about passing documents and paperwork. Here’s how to properly register your business.
Think Of A Name And A Logo
Before anything else, you need to think of a good name for your business. Think of one that’s unique, catchy, and most importantly, easy to associate with the line of business you are in. Also, consider that you need to make sure that the name you are picking isn’t already registered by anyone else.
The same goes for the logo too. It needs to be eye-catching and memorable enough to ensure that people don’t forget it after a glance. These are the two most important things you need before registering a business, so make sure to think long and hard about these.
Manage All Documents
Now comes an important part, readying all of your documents for the business. These include your personal IDs and documents, and all that. It’s vital that you prepare these things beforehand to ensure that your registration process flows as smoothly as possible. This shouldn’t be the last process you skip on.
Ideally, you’d want to keep a folder where all of your documents are stored. Even if you are registering online, and you are sending documents online, keeping a physical copy of the papers is very important. Store the originals in a secure place and make sure they are protected from damage.
Get Your Numbers
Most commonly, there are two numbers that you’ll need to get for your business. The Business Registration Number (BRN) and the Company Registration Number (CRN). Many people tend to confuse both numbers thinking one and the same, but they both serve different purposes.
The CRN is basically what’s like the Social Security Number of your business. It is the means through which it is identified and classified. In the future, the CRN is what will be used to reference your business, and it’s easily one of the most important numbers you’ll have to take note of.
On the other hand, the BRN is going to be used by various government agencies for tax purposes. If you click here, you can see that BRN is typically more functional than CRN because you’ll be handling taxes regularly. Both numbers are going to be finalized in a document that you need to keep at all times.
Determine Your Business Structure
It’s also important that you begin considering what type of business structure you’d want for your company. There are three primary types of business structures to consider: sole proprietorship, partnership, corporation, and limited liability company.
- Sole proprietorship – If you are running the business on your own, you might want to consider getting a sole proprietorship. While financial documents are easier to manage, the downside is that all debts and obligations are going to be directed to you. It can also affect your personal credit.
- Partnership – This type of business structure is fit if two or more people own the business. This is a good way to spread responsibilities in the business. Even better is that financial responsibilities are split between the owners.
- Corporation – This is a good structure to have if you want to separate your personal liability from the liabilities of the company. Most people pick sole proprietorship because of the legal benefits.
- Limited liability company – This is one of the most common structures for businesses. It basically benefits from the legal corporation of a company and the tax benefits of a partnership.
In terms of which of these are the best, many business owners will consider getting LLCs. This is one of the best ways to register your business because of the benefits it has for taxes and legal obligations. However, the choice is completely up to you.
Registering a business doesn’t have to be hard and complicated. As long as you familiarize yourself with what you do, you can get your business goals rolling through registration. It’s important to register your business because it legitimizes it, so never skip out on this part!