5 Reasons Why Business Registration is Necessary

5 Reasons Why Business Registration is Necessary

The idea of starting a business can come into your mind at random. All you need to do to operate a business is provide products or services to people. While it is not always necessary to register your business with the government, it can be beneficial for several reasons. IKt is also a requirement if you are charging sales tax (HST/GST/RST etc. You aree required to get a tax number if your annual revenue exceeds $30,000.

Creation of Business Accounts

One of the main benefits of having a business bank account is the ease of separating your business expenses from your personal expenses. To open a business bank account in North York, Ontario, you have to provide proof of registration of a business with a state. Having a business account also allows you to make business transactions without using your full name. Itr also allows you to segregate your personal property from your business property, thereby protecting your family’s assets such as inheritance, kids’ college funds etc.

Obtaining Loans

Before applying for a loan, it is necessary to prove the authenticity of a business. In most cases, investors or lenders demand documents related to business registration, such as a business number, before investing or loaning money. The same holds true when a business applies for a credit card.

Professional Image

The reputation of a company is extremely important, especially to new clients. When a company is not registered, a client may feel that it is less professional or reputable. Clients are generally more at ease doing business with companies that they trust, and having a business registration in place not only promotes trust but also builds confidence among customers.

Supplier Arrangements

You usually need a company name both for arrangements with suppliers on where to deliver goods and services as well as for potential clients to find you,

Recruiting Employees

After registering a business, you receive an identification number that allows you to route taxes on behalf of employees.  Because of this, most business owners should consider registering their business before starting to hire employees.

If you have questions about the benefits of business registration or want detailed information about registering your business, speak to our business advisors in North York, Ontario now!