Have you considered registering your new company? In 2019, Australia registered over 355,000 new businesses, according to Statista. You can find a business registration service that offers faster processing, affordable fees, and online registration. However, it’s important first to determine whether or not you should register your company.
Some of the main benefits you can experience include the following:
- Tax Liability
Your registered company will likely pay lower taxes than an unregistered company. The main factor is your company’s income, but there’s a good chance your tax liability will be lower than the tax paid after your assets.
For example, if you have a small business in Australia, you’ll pay lower tax rates than the highest rate for individuals.
Another related benefit is your company can also receive tax deductions for different expenses, including:
Depending on how much your company spends in these areas, it might receive a large tax deduction. Besides getting the tax break, your company can also benefit from investments like training and education.Visit here for Centurylink internet services
- Personal Liability
This issue is one of the most important benefits of registering a new business.
If your company has incurred a mistake, you won’t be personally liable after it’s registered. It can help protect your assets and make them separate from your business assets.
When you can free up your assets, this allows you to grow your business. It will enable you to use your money for various priorities, including house and car payments. But also you will be legally held responsible for every aspect of your company, including losses and debts.
- Co-Founder Conflicts
When you register your company, it can greatly reduce the chance of conflicts with a co-founder. In the case of a registered company, the co-founders’ control over the company will be based on how much shares they own.
Thus, the owners will clearly understand that each investor’s stake in the company isn’t based on verbal or written promises made before company registration.
If issues arise between the founders, decision-making power will be based on each founder’s shares. This is a more objective way to settle issues and help avoid more subjective agreements, including verbal ones.
- Investments Raised
If your company is registered, you have the ability to raise a substantial amount of capital from potential investors. Besides the amount you can raise, the process will also be easier.
You can also take steps like selling shares and raising equity capital. Thus, a registered company’s business structure eliminates the need to pay personal taxes based on such fund-raising.
Raising money can be important for sustaining and expanding your business. The process is much easier when you’re running a registered business.
- Brand Awareness
Today the world’s largest tech companies like Apple, Google, and Facebook are all registered companies. This provides more legitimacy and transparency for companies.
Registering your business can help to improve the public’s perception of your company. For example, companies in Australia have an Australian Company Number (ACN) and are accountable to the Australian Securities and Investments Commission (ASIC). When considering various business structures, you can experience several benefits by hiring a business registration service. This provides possible benefits, including brand awareness, raising funds, and tax liabilities. These are all valid reasons to consider registering your company.