If you currently have a business or you’re thinking of setting up a new one, you probably thought about becoming a sole trader first and as the business improves, you might consider expanding as well. However, what many current and new business owners are not aware of is that trading as a sole trader is leaving you open to a number of problems. For example, if you are a sole trader, liability is with you and so you may have to sell your personal property like your home or your car to pay outstanding bills. This means that you are putting your family’s future in jeopardy and your own as well because you didn’t register your business at the very beginning. Many people think that registering a business is a complicated process, but it really isn’t and it is actually there to protect you.
If this has struck a chord with you and you can’t immediately see the benefits, then you should be thinking about registering a new Thai company if it is your intention to start a new business venture in Thailand. If you’re still not completely sold on the idea of registering your company, then maybe the following benefits of doing so can help you to make a more informed choice.
– Your personal liability is limited – This is essential if you are to protect yourself and your family from any future financial issues. If your business runs into difficulties and the court’s award payment to the other parties, then only company assets can be sold and none of your private assets. Your business enterprise will be regarded as a totally separate entity and this will provide you with the peace of mind that everyone should have when starting your own company. It doesn’t seem right that you should be personally punished while you are trying to have a work/life balance if you’re business isn’t a complete success. The limited liability is there to protect you, so is no reason why you shouldn’t register your new company.
– Lower tax liability – Many people wrongfully assume that if they are a sole trader or they are part of a partnership that they would be paying lower taxes. The opposite is actually true and once you are under a company structure, the government can offer various tax rates to your business. In many cases, these tax rates are much lower than personal income tax and you can claim tax deductions for necessary business expenses like advertising and staff training. By registering your new company, you are actually going to save yourself a significant amount of money over the coming years. To learn more about setting up a business in Thailand, check this out.
It’s plain to see that registering your company is the smart thing to do and it’s probably one of the best business decisions that you will ever make. There are various service providers out there that can do all of the work for you and this allows you to get on with increasing your customer base and thus increasing your profits.
