Are you looking to operate your Business using a name different from your personal one with Minimal Capital with a less cumbersome registration process?
Then a Business Name (BN) is the best way to go.
You can register a Business Name as a Sole Proprietor or a Partnership.
A sole Proprietorship is a Business Entity owned and run by one individual. The sole proprietor has no distinction between him/her and the Business And he/she enjoys all the Profits and has an unlimited responsibility for all the losses and debts accrued by the Business.
Major advantages of operating a sole Proprietorship is that it is easy to start and run due to the small amounts of capital required, and the owner enjoys all the profits of the business. Its major pit fall is that the proprietor has unlimited liability for the business debts and incase the firm is wound up the creditors may force the sale of the proprietors personal and business property to satisfy their claim.
A partnership is a legal form of Business Entity owned by a minimum of 2 and a maximum of 20 people who share management and profits.
One of the major Advantage of a Partnership is the Tax benefits it enjoys because it doesn’t pay Tax on its income but passes through any of its profits or losses to the individual partners.
Major disadvantage of partnerships include the unlimited liability of all the partners and the Business Partners are jointly or individually liable for the actions of the other partners.
We strongly recommend partners to regulate and record their relationship by means of a Partnership Agreement (also known as a Partnership Deed) to substantially minimize the likelihood of disputes between the partners