Aminu Lawrence
New member
Someone somewhere is about to register his business as a business name instead of as a company and some how hoping to have actual shareholders in his business.
Another person somewhere also thinks that with his registered business name he can enter into contracts with government agencies and other individuals
I know it's too early in the day but I feel like someone will need to see this now before making that decision.
Better to register your business as an LLC (Limited Liability Company) from day one especially if you are building with other people as partners or Co-founders.
If you already registered as a business name, consider upgrading it to a proper company.
Here is why I am making a case for LLC over business names or enterprise.
1. A business name cannot own shares in a registered company.
In other words, a business name cannot be a shareholder in another company or business.
An enterprise or business name is not a legal entity and lacks the capacity to own shares.
Only legal entities ( actual humans or actual companies ) can own shares
2. Just as you can't own shares in a company, you can't also give out shares or have shareholders in your business name registration set up.
It has no legal power to do that, this means that as a business name you can't take advantage of Equity funding options from investors.
3. You cannot enter into any form of contracts or own properties in your name as a business name. Only registered companies (LLCs) can enter into contracts or become property owners in their name.
Another person somewhere also thinks that with his registered business name he can enter into contracts with government agencies and other individuals
I know it's too early in the day but I feel like someone will need to see this now before making that decision.
Better to register your business as an LLC (Limited Liability Company) from day one especially if you are building with other people as partners or Co-founders.
If you already registered as a business name, consider upgrading it to a proper company.
Here is why I am making a case for LLC over business names or enterprise.
1. A business name cannot own shares in a registered company.
In other words, a business name cannot be a shareholder in another company or business.
An enterprise or business name is not a legal entity and lacks the capacity to own shares.
Only legal entities ( actual humans or actual companies ) can own shares
2. Just as you can't own shares in a company, you can't also give out shares or have shareholders in your business name registration set up.
It has no legal power to do that, this means that as a business name you can't take advantage of Equity funding options from investors.
3. You cannot enter into any form of contracts or own properties in your name as a business name. Only registered companies (LLCs) can enter into contracts or become property owners in their name.