In the previous post, you were introduced to Becky, the high flying digital marketing professional, who lost her job and decided to start up her own Digital Marketing Agency.
The structure she decided to adopt for her business was Sole Proprietorship. She figured this was the best option for her because she was starting out on her own and the cost and requirement were minimal.
This is how BeConnect Agency came to life.
There are a number of different #LegalStructures that differ in several important aspects. Your choice will depend on the purpose/reason for operating that business. To we will be looking at the Business Name (Sole Proprietorship) structure.
Who can register a business name?
As long as you are an adult, of sound mind, and have not filed for bankruptcy, you can solely register a business name. A minor can be also be added as a proprietor provided two other adults are also listed as proprietors and a Legal Practitioner, Magistrate or Justice of the Peace attests on behalf of the minor.
What do I need?
You will need two (2) passport photographs, means of identification (International Passport or Driver’s License), Certificate of Proficiency (where needed) and payment of filing fees.
What kind of businesses fits the Business Name structure?
Generally, most businesses can be registered under the Business Name structure. Examples include digital marketing services, make over services, consulting businesses, furniture makers, interior decorators, Sports promoters, estate agents, catering services and so on.
• It is the cheapest to set up
• One person can register a business name
• Tax liabilities and annual returns are lower than for other structures
• You bear all the risk, debt and liability
• When you die, your business dies with you
• Since you don’t have share capital it would be difficult to raise funds
• You cannot register a trademark to protect your products or intellectual property
Please make sure you seek advice before registering a business name because once it has been registered you cannot upgrade it to a limited liability company except you first file for cancellation of the existing business name.
We would catch up with Becky’s story in the next post. Thanks for your engagement so far. Any questions?