Sub Topic: First Things First

I want to welcome you to another day of learning on this platform. Am sure my topic of today would be surprising to most of us here. Now first things first, simply means we should not put the cart before the horse. We should endeavour to do things the right way in order to arrive at our desired results, which in business is to make profit and mitigate loss.
Now, how do we protect our interest in Real Estate practice ? That should be the question we should be asking ourselves now. First you must have one time conceived the idea that you want to actually practice as a Realtor before coming into this property business. But, did you take time to find out how to go about practising same in order not to be cut unaware by the law, government, your clients and even your colleagues in this business.

Let us go straight to the point now, the first thing a Realtor that wants to practice this business is meant to incorporate his company by registering a Limited Company which is more preferable to just a Business Name registration.

The major advantages of a Limited Company over a Business Name is that you are :

1) The merits and what you can do in a business name are limited. While a Limited company has many more advantages to be enjoyed than a business name.

2) A Limited company is more professional in the image of your business, this shows you are committed to abiding by professional corporate governance structures as created by the CAC.

3) A private limited company has the advantage of increasing the number of their business objects, while a Registered Business Name are limited to just 3 objects and limiting the kind of business they can do. Whereas, a Limited company can do any type of businesses and no limits on the number of their business objects.

4) Unlike a Business Name, a Limited company is a separate legal entity (an imaginary person) from the people who created/run it in the eyes of the law. Thus, it can sue and be sued in its own name.

5) Shareholders liability in a Limited company are limited to the value of their shares they hold, while in Business Name the Sole Proprietor or Owner of the business bears full liabilities.

6) A Limited company has more sources of capital compared to a Business Name. Even the banks are more willing to grant loans to a Limited Company than to a Business Name.

7) Lastly, there is continuity in a Limited company. The death or withdrawal of a shareholder does not bring an end to the business, unlike a Business Name once the owner does that might lead to the end of the business.

In conclusion, its advisable to at least register your business name first if you want to start small and once your business is growing you can convert same name into a Limited company. The way you package your business goes a long way in the telling about the type of clients you meet. Once, you have incorporated your company don't forget to meet with a printer to help you get a business card and letter headed papers you will be needing in branding your business here.

We shall continue from here next week Tuesday. Remain blessed.


FOOD FOR THOUGHT: When someone shares something of value with you. You have a moral obligation to share it with others because someone in your friends list might just be needing the information. Information is power. Thank you and don't forget to follow us at Facebook https://www.facebook.com/imaginproperties , Blog www.lagospropertylawyer..com , Instagram @imagin247lagos_property_lawyer and Twitter @imagin4u #LagosPropertyLawyer