In a previous blog I explained that my #1 secret weapon is my team. I also introduced you to my team!
So for me, having the right team helped transform my idea into a product. However, one of the first things I did was to register my business name and create a limited liability company.
The majority of business owners operate as sole traders, partnerships or limited liability companies.
A sole trader is the simplest route because it involves registering your business name at the Company Registry and then applying for to the Board of Inland Revenue (BIR).
Does your business face any of these risks —
- the possibility of injuries to others, for example, libel, in the case of publications
- damage to someone’s property through your sub-contractors or
- reliance on your advice that can have adverse impacts.
Fact: Operating your business through an incorporated limited liability company can protect your personal finances; your house, car, personal savings etc.
The most common, and easiest way
Let’s be honest forming a company involves paperwork and lots of filing requirements before and after company incorporation. There are options available now that makes the process hassle free and affordable.
If you’re thinking of starting a business and don’t know where to turn, you can head to our website Small Business Simplified and select a start-up package that matches your needs and budget. With our online solutions, you can form your company without ever having to leave the comfort of your own home or office,
With that said do you want to find out why I incorporated my limited liability company?
1. Put a firewall between business and personal life
Incorporating transforms a business into an independent entity that’s separate from its ownership. The owner may die or move on and management may change, but the incorporated business continues to exist until it is sold or dissolved.
2. Protect personal assets
Incorporating also inserts a legal wall between your business and personal life. This protects your non-business assets in case your business is sued.
3. Raise money
Another common reason to incorporate is to raise money for your business. In order to take on co-owners or issue stock by selling ownership shares, a company must be incorporated.
4. Add some polish
There’s something solid about adding “Ltd.” to your company’s name. Carnival City Tickets Ltd just looks more credible than Carnival City Tickets. That stronger presence may convey greater trustworthiness or stability to your clients, suppliers and to the world at large.
5. Compete for more contracts
Some businesses require their vendors and contracting companies to be incorporated before they can compete for contracts. This is common for many tender applications in the Caribbean.
6. Entice and hold employees with stock options
A corporation has an advantage in attracting talented employees: It lets you offer them partial ownership in the business through share/stock options.
7. Establish credit in your business’s name
Small business owners have two options for funding company expenses:
- Lend your company money from your personal assets and use your personal credit to apply for loans, lines of credit and credit cards for company use.
- Establish credit and apply for loans and financing in your business’ name.
If you want a limited liability company creation, in Trinidad and Tobago see my incorporation packages for quick and easy startup services!
Hope these tips makes your decision easier. I am here to answer any other questions you may have.
Until then, see you next time!