If you currently have a business and are trading as a sole trader, or you are in a partnership with someone else, then you are leaving yourself open to the perils of doing business when all of the liability falls on you. If your business were to get into difficulties and you were unable to pay off your debts, then you could be forced to sell your home and your other personal property like your car, to pay off these debts. You are jeopardising your future and the future of your family, and so if you don’t want to find yourself in a difficult situation such as this, then it’s probably better that you register your business. For many people, talking about registering their business as a company seems like a very big step, but once you do it, you will get to enjoy all of the benefits of trading as a company.
If you have been pondering over the idea are some time and don’t really know where to start look here at https://malaysia.acclime.com/formation/company-registration/ to find out everything that you need to know with regards to the procedure, and any assistance that can be provided. Once you get your company registered, you will see positive changes beginning to happen, and from that the benefits will flow.
- It limits your personal liability – As mentioned briefly before, if you are a sole trader or in a partnership, then you are responsible for all the aspects of your business and that includes all of your debts. If your business finds itself in the courts due to some liability issue, then you and your partner are fully liable. This is a very risky way to run any business, because your home and car are all in jeopardy. However, one thing that all businesses have in common is once you register your business as a company, it is seen as a completely separate entity, and stands alone by itself. This then protects your assets from any issues that might occur as a result of your business. This will provide you with essential peace of mind, so that you can concentrate on growing your customer base and increasing your profits.
- It reduces your tax liability – Believe it or not, but it is very likely that you will pay less tax once you are under a company structure. Many businesses enjoy a lower tax rate than an individual tax rate, and so if you remain as a sole trader or in a partnership, then you will end up paying more taxes than you should. You also get to enjoy registering tax deductions for things such as digital advertising, staff training, and any essential repairs and maintenance to your business property, or company vehicles. To learn more about registering your company, have a look here.
As you can see, there are benefits to registering your business as a company, and although it will cost you a little bit of money to set up in the first place, it will more than pay for itself over the long term. It is probably one of the more sensible business decisions that you will ever make.