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Being a business is much more than simply selling products and making money. Though these are a couple of the primary goals, your company is likely to have a lot more on its plate than simple marketing. Instead, you have loads of areas to consider, from law right the way through to tax, and this post is here to help you out. To solve one of the biggest considerations you have to make, this post will be exploring the benefits of registering with Companies House.
If you’re not already set up, it’s likely that you’ll be building a limited company, and this is where you’ll have to start. The main difference between an LTD and a PLC is the way that they are traded. With a PLC, anyone can buy a piece of your company, whereas an LTD will keep it all to you. Along with this, you’ll need a lot more funding to start a public business, limiting you to what you already have.
Financial Liability: The key benefit of registering your company will come in the form of financial liability. With your company registered, it will be responsible for the money coming in and going out, leaving you in the clear if issues ever arise. A quick company formation could save you thousands if the customers stopped coming in. Of course, though, you should always be working hard to avoid needing a feature like this.
Equity Shares: Splitting up a business with contracts is a great way to handle the amount you and your partners own. But, without the backing of the government, it could be hard to ensure that equity is fairly managed. Companies House can handle this side of the company for you, providing everyone with reports of finances to ensure that no one is left out. This can be very powerful when you’re first starting out.
Taxability: There will come a time when your business simply has to grow and get registered, as it will reach the threshold for VAT being charged on sales. Having a company set up will make the process of filing tax reports much easier, as you won’t have to worry about performing it under your own name.
Legal Protection: Finally, as the last benefit to consider, it’s time to think about the ways that you protect your intellectual property. There are always people out to steal your logos, designs, and the other branding you’ve worked hard to create. By registering as a business, you will be adding yourself to a record which is often used to determine the ownership of content. Having someone else working with your business name can be incredibly frustrating.
Hopefully, this post will inspire you to start looking into the idea of upgrading your business. A lot of people struggle to see the benefits of a move like this, even though they can be so vital to your survival. Of course, though, now you know, and there’s no excuse to keep yourself off of the register.