In recent years ecommerce businesses have flourished. Ecommerce businesses are preferable to more traditional business
models because they allow buyers and sellers to conduct business exclusively online. However there are a variety of benefits available to ecommerce businesses that are willing to follow more traditional business formalities. Company registration is a great way for an ecommerce business to take advantage of government funding, while also legitimizing the entity in the eyes of the general business community.

In the United States companies can be registered in a variety of ways. Either you can register your business locally with your county’s Chamber of Commerce, or with your state’s Department of Revenue. You can also register your business at the federal level by registering with the U.S Small Business Administration or with the United States Business Registration. Registering your business with one of these entities will assist you in obtaining loans, allow you to open business accounts, make you eligible for federal loans or grants, and also increase your business’s reputation in the business community.

1) Registration Will Increase Your Ability to Receive Business Loans

By registering your ecommerce business you will have proof of your companies existence to show to banks and loan officers. This proof of registration will make you a more preferable borrower because registration illustrates that you have complied with existing legal business formalities. Most lenders will also require proof of such business registration before they even consider giving you a loan.

2) Registration Will Allow You to Open Business Accounts

The procedures to open a business banking account are typically more stringent then those required for opening a personal checking account. To open a business banking account you will be required to show proof of your ecommerce business lawful existence. Your proof of registration is a simply way to illustrate a valid and legal business existence.

3) Registration will make You Eligible for Public Grants and Aid

The institutions that grant company registration were all founded to foster a rich business community, in order to encourage financial growth and stability within the economies and communities they serve. To encourage and aid local and federal business, a variety of business grants and loan are given to worthy businesses in the community. However, these grants and other aid cannot be obtained unless you are a properly registered business.

4) Registering Will Bolster Your Business’s Reputation

In this day and age, though ecommerce businesses are increasingly the norm, many worry about the legitimacy of such
companies. Some wrongly see ecommerce companies as businesses that operate outside of the law without the checks and functions that are imposed on more traditional business models. By registering your company you will bestow upon your ecommerce business a degree of legitimacy that puts it on par with other registered businesses in your community.

Deciding to register your ecommerce business is a great decision. Company Registration comes with a variety of perks that will only benefit your business. By registering your company at the federal, state or local level you will be legitimizing your business in the eyes of the government and other business owners. Registration will allow you to open business-banking accounts, apply for public grants and other aid, which are reserved exclusively for registered companies.



Mike, aka The Dividend Guy, authors The Dividend Guy Blog since 2010 and manages portfolios at Dividend Stocks Rock. He is a passionate investor.