A trading name or a business name is basically just the same. If you will check online, you will see that they hold the same meaning. It means the name of the business you are running. It can be your own name or it can be another name of your own choice. Once you will plan to open a business, for sure you are also planning at the same time for a name to use. There are some who will just use their name for the time being so that they won’t need to register it. Yes, if you will use your own name as the name of your business as well, then there is no need to register it though of course, you can also register it if you choose to like you have other reasons in doing so. After all, there are a number of benefits in registering a trading name.
These are the benefits of registering a trading name:
– Registering a business or trading name will give you a unique identity. In business, it is important as if there is another business with the same business name as yours, and it happens that you both provide the same services, chances are your customers might end up in his shop. Good if the other business is more popular than yours. But still if that is the case, then it will be hard getting your own clients as well. It is always better to be known as you.
– Registering will also kind of protect your personal assets. You see, you really don’t know if everything will be good for your business all the time. What if something will happen in which you end up availing a business loan, and when paying time will come, the assets in your business alone cannot pay all of them? What will happen is they will also be able to grab your personal assets. But they can’t do that though if you will register your business in another name since it will be in a different entity separated from you. You see, a business is treated like another person thus your business will then be another person.
– Once you will register your business, part of the requirements imposed by the government is for every business entity to display the business registration on the wall of their business office. Thus you will have something to show to your clients or customers. It will make you more professional and more serious at the same time like you will be reliable. Note that people these days are quite doubtful because of the fact that there are now a lot of scammers and they are afraid to be victimized. Seeing you are a legit businessman will make them a little trusting.
These are just some of the most common reasons why you should register your business name. There are still more actually but the topmost reason is that you will be running an illegal business if you won’t.