Incorporating a company comes with its share of legal regulations and requirements. So for a business owner who is already operating successfully, or for an entrepreneur who is considering launching a new business venture, it may beg the question, “Why should I incorporate my business?”
Below we do a countdown of 5 of the benefits of company registration that may be worthy of your consideration:
The first step in the company formation process is to verify the availability of a company name. That means that once you have registered your business entity under your company name, it is protected and cannot be used by any other organisation.
More than that, company registration also safeguards your brand, giving you more control to protect your brand reputation.
Company incorporation helps to reinforce consumers’ perceptions that the company is legitimate which automatically engenders a level of trust. This can be a strong competitive advantage over competitors that operate without the cloak of officiality.
The advantages of trust also extend to when it comes to financials, potentially making it easier to qualify for business loans, for example.
Opening a business bank account and starting to build lines of credit may also be easier for incorporated companies. For example, we are pleased to offer all our UK-based company formation clients an entirely free fast-track business banking referral service to help get your company off to a solid financial start.
A major advantage of company incorporation is the ability to protect yourself financially. Business owners are fiscally responsible for the liabilities of their businesses. Your personal assets can be seized to pay off company debts. When a company is incorporated, however, in the event of any legal challenges, personal losses are limited to the amount that has been invested into the company, and personal assets are protected.
One of the primary advantages of company incorporation is the opportunity to minimize tax deductions. While companies are subject to more stringent reporting and higher fees than sole proprietors, there are tax certain tax advantages:
So, whether you’re a startup, contractor, business partnership, not-for-profit organization, are already operating, or are looking to set up a new company with any other business model, we are ready to help you register your company in the UK quickly and easily, with our range of company formation packages designed to suit every business model and budget.
121 Company Formation is one of the UK’s leading online company formation agents. We have helped over 50,000 entrepreneurs register a company in the UK. We offer the most comprehensive range of services including company formation packages that start at just £15.95, administrative, accounting, and bookkeeping services to support you and your business before, during, and after the incorporation process.