Hello

How are you doing today?

I hope you find it strange like i do that it is still raining heavily in October!

Anyways, we are grateful.

The same rain is what many are praying for but don't get to see.

So yeah!

It is what it is!

In today's newsletter, I want to quickly share with you 3 very important reasons why you must register your company as an LTD.

This is very important to note especially if you are building something you hope will become solid and stand the test of time and transferability.

Here are some important reasons to consider...

First, a business name, an enterprise, or a venture has no potential value to an investor.

There is no equity, no board position, no shares, and absolutely nothing to give in return for the investments thereby reducing the possibility of having an investor.

It still amazes me that some people think that issue shares and ask people to come and invest in their Business name!

Don't play at this level of ignorance.

Secondly, a Company Ltd by shares protects the shareholders from being personally liable for the debts of the company.

Their liability is only limited to the value of their investment in the company, unlike a business name where the owner’s liability is unlimited.

An owner of a business name is solely responsible for the entire business's debts.

also, his personal property is not protected...

He can be sued and his properties sold off to offset the debts of the company.

thirdly, a Ltd liability company has a separate legal personality from the day it is registered.

It becomes an artificial person with all the powers of a natural person.

An Incorporated company can enter into contracts and can sue and be sued in its own name e.g ABC LTD but a business name has no such power.

A business name can only sue and be sued in the proprietor's name.

A business name has limitations in terms of the kind of businesses it can be used for.

You are probably trying to cut costs but think about what is best for your business.

Don't be penny-wise Pound foolish.

If you already have an enterprise it is possible to still upgrade it to the status of a Ltd liability company.

If you are starting a new business it's better you do a limited liability company registration once and for all.

Talk to us by replying to this email and we would be more than glad to help!

To your #LegalSense

#BarinaadaLegal