If you are currently in business and you are operating as a sole trader, or you might be in a partnership with another person, then you are not doing what’s best for yourself or best for your business. Trading in either of these ways leaves you open to many business liabilities. If, for example, your business got into financial difficulty and you were unable to pay off any debts that were owed, then you could be forced to sell off your private property like your home and your car. You’re not only jeopardising the future of your business, but also the future wealth of your family. It is important then, that you make sure that you don’t put yourself in a situation like this, and so it always best to take the time to register your business.
If you feel that this is a necessary step, and you need some assistance with it, then there are service providers that can help you. For example, they specialise in company formations in Vanuatu and many other destinations as well. If you’re still not sold on the idea of registering your company, then maybe the following benefits can help you to make the right decision.
– Your personal liability is limited – As I mentioned before, if your business runs into any difficulties and it incurs debts that cannot be paid using company funds, then you’re putting your whole lifestyle and risk. The courts will probably rule against you and you will have to sell your home in order to be able to pay the debts owed. When you register your business however, it is treated as a totally separate business entity and it is liable for its own debts. This is peace of mind that every business owner should have and can be achieved if you register your business.
– Tax liability reduction – As a business, it should be your primary goal to reduce your tax liabilities and believe it or not, you actually pay less tax when you own a company, as opposed to being an individual. With the right service provider behind you, you can claim tax reductions from many things within your business like advertising, staff training and company vehicles.
It is clear to see that there are many benefits for registering your business as a company, and although there may be some initial setup costs, you will find that it will save you a lot more money in the long run. As far as business decisions go, this is probably going to be one of your better ones.