Business Registration – Things to Consider

Registering your business is one of the top requirements when starting a new company. Applications need to be filled out and, depending on what type of commerce you want to conduct, permits and licenses may need to be obtained.

When starting a business, one of the first things you will have to consider is what kind of legal business structure will suit your enterprise best. It is a decision you will need to properly research, as your choice will ultimately impact your liabilities, taxation levels, succession, ownership issues, the disposal of your company if you ever decide to sell, and other legal matters.

In Australia, for instance, common business structures include:

• Sole Trader or Sole Proprietorship: a business structure in which one individual carries all the trading responsibilities of the company.

• Partnership: Two or more people can legally share responsibilities, liabilities, risks, profits, and losses.

• Company: a regulated, legal entity that is separate from its officers and shareholders. Common types are: public and proprietary companies.

• Trust: an entity in which the business is transferred to a third party who controls all legal issues. This party has the duty to successfully run that business so the members of the trust will benefit.

Before starting your business registration process, you should consider all the possible advantages and disadvantages of each type of structure, and choose the one most beneficial to your specific trade. Ask yourself,

• What type of business do you want to run?

• Can you handle all the responsibilities on your own, or would it be better to share the obligations with a partner?

• What is kind of income and profit margin do you consider acceptable?

• In what way will your profits affect your personal income and taxes?

• How can you best safeguard your company and yourself against legal liabilities?

• Can you personally be held accountable for business errors? Are you willing to accept that kind of responsibility?

• How valuable will your business assets be?

• To what extent are you familiar with capital gains tax, registering share holders, and other business practices?

Once you have settled on the structure, you can then research an appropriate business name. Picking a name may sound simple enough, but do not forget that your choice will have to be accepted legally in your state or territory. No two companies can carry the same name; if your suggestion has already been officially listed, you will have to pick another name or modify your original proposal.

For first-time entrepreneurs, handling their business registration, on top of leasing building, hiring employees, drafting company policies, dealing with legal affairs, managing funds, and other necessary tasks, may become overwhelming; they should call upon a professional corporate service agency to assist them in their start-up endeavor.

Specialized corporate service providers are trained professionals who deal with the legal aspects of company registration, business laws, fundamental rules and regulations daily. They know exactly what needs to be done, and where to file all necessary applications. Having these qualified consultants handle your business will not only save you time, but will also guarantee that you will not be fined for neglecting critical rules, or missing important permits. They reduce some of your heavy workload, freeing up precious time you can spend on other business obligations.



Source by Mathew Striger

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