Which registration to use.
WHAT A BUSINESS NAME PROVIDES
A registered trading name Lower cost Simpler ongoing obligations
WHAT IT DOES NOT PROVIDE
Any separation between you and the business.
WHAT THAT MEANS PRACTICALLY
Your personal assets are exposed to business liabilities.
WHAT A COMPANY PROVIDES
Separation Limited liability The ability to bring in shareholders Continuity independent of the founder
WHAT IT REQUIRES
Annual returns Proper records More formality
WHAT DETERMINES THE RIGHT CHOICE
The risk in the activity Whether you will take on partners or investment Who your customers are Whether you will employ people
WHY CUSTOMERS MATTER
Larger organisations and government frequently require a company.
WHAT ELSE FAVOURS A COMPANY
Seeking finance Holding contracts of value Any activity with meaningful liability
WHAT FAVOURS A BUSINESS NAME
Testing an idea Very small operations Minimal liability exposure
WHAT TO KNOW
You can register a company later, and transfer the activity.
WHAT THAT COSTS
Some administrative work.
WHAT TO AVOID
Choosing on registration cost alone.
WHY
The difference is small compared with the liability exposure.
