If you are a freelancer, no matter what type of work you do, you should consider registering your business. It can provide benefits, from helping you take full advantage of tax credits to looking more professional for your clients.
It is also fast and simple to do, as long as you do it the right way.
So, let’s take a look at what is involved, the pro and cons, and how to make it as easy as possible.
How to register your business Choose a type of business
When registering your business, you can decide to create a sole proprietorship or a corporation. A sole proprietorship is the official name for a business owned by a single person. It is typically a good choice for freelancers as it keeps things simple.
On the other hand, creating a corporation involves making the business its own separate legal entity. It is a more complex process but also offers its own benefits. Here are some things to consider:
Sole proprietorship benefits Simple to register.Low startup costs.You maintain complete control.Sole proprietorship drawbacks All liability continues to be on you.Can be harder to get investments and loans (some investors and financial institutions will require