Business owners know that they should file their businesses with the state for tax purposes. This is a responsibility and usually done begrudgingly. After all, who wants to pay taxes? But are there any advantages for registering business with the state? You may be surprised to learn that there are three major advantages for registering business with the state.
1.) Claim Ownership of Business Name
When a company registers business name with the State, that business name is recorded and recognized by the government as theirs. Each business name can only be registered with the State once, which means no two business names are duplicated. The company has the advantage of knowing that their business name is protected from competitive usage within their State territory.
2.) Protection from Liability Accidents
Registering with the State, also gives companies legal liability protection. If business is incorporated, no one can legally go after business owner’s personal assets. They as an individual are held not liable for accidents. If someone were to become injured on company grounds and sue, that person can only seek punitive damages from company assets, not personal. Most businesses invest in insurance coverage in case of these types of lawsuits. Businesses that are incorporated are more insurable than those that are not simply because incorporated businesses have less risk attached to them.
3.) The Longevity of Business Name
The last benefit of registering a business name with the State is that the name can live longer than the business owner. This means that if the business owner dies suddenly the business name does not also have to die. The registered business name can be taken over by another or sold after the death of the business owner. Only registered businesses can keep the name after the death of the owner.