You should choose the most suitable business structure based on the size of business team and capitals. Normally, lone ranger or few rangers will go for the Sole Proprietor or Partnership as these business structure allow the full control over the cash flow. However, operating as a sole proprietor (partnership as well), the personal assets are at risk. The risk is the personal assets can be seized by the court anytime if your business doesn’t have enough to cover its debts. On the contrary, both the corporation and LLC separate you and your assets from the business, and provide other tax benefits but in turns more paperwork.
Despite the procedures and documentation for business registration might be painful, you could taste the great reward from it in the near future. Here's closer look for at the benefits of the business registration to the online business.
At the very beginning stage of the startup, founders and co-founders had to come into a win-win bargain on the equity ratio distribution and right's protection. Practically, each parties solidify the consensus by signing the agreement consolidated with a proper business registration certificate in order to create a sustainable business relationship. While the name of the each pioneer business partner are listed in the business registration certificate, it accommodate a great effect in giving them the peace of mind to work together.
Trustworthy and functionality
In fact, great internet technology is a double-edge sword whereby some brainy seller abused it to scam money online. Therefore, the solution to avoid any misunderstanding, a business registration number is anchored at the footer of the e-Commerce website to increase the trustworthy of the online store. Moreover, since all the payment gateway company would only approve the registered business owner as their merchant, this reason alone had made the online business owner compulsory to get their business license as the payment gateway integration has become the benchmark of the online shopping today.
As in the shoe of regular online shoppers, they are highly likely to convert with seamless shopping experience. This phenomena explained that the people are bench-marking online store with other competitor based on the payment method. So, bear in mind for this ! you won't want the buying customer slip away just because of payment method issue. Upgrade your online store today by:
1. Get your business license.
2. Apply for the payment gateway account.
3. Integrate it with your online store
4. Increase conversion.
Finance and funding
Getting the capital funds from the investors could be forever undone or overnight success. The first step to acquire the funding would be the business license as the investors felt safer to invest in a registered business compared to a single person.
Furthermore, with the business license, the revenue of business can be legally parked under the business name and thus making the financing work easier. Some of the online business owner might don't know, in the case that you are operating the online business at home (principal place of business), it's possible to include the reasonable amount of housing expenses as the indirect cost which can save you a bundle on the tax day! Okay, now you know to keep your utilities bill receipts properly for this purpose every year.
(Notes: check the rule and regulations of tax in your country before doing this)