If you are reading this, then your Multilevel Marketing (MLM) business is at a stage where it is flourishing right now! As you’re noticing this growth, you’re probably wondering, “Should I register my MLM?” The answer is YES if you own a company.
Registering your MLM has some great benefits, and it is a hassle-free process if you have done your homework right. Read on to learn more about these benefits and how you can prepare to register your MLM.
You do not know about MLM and if you have landed on this blog, give it a read. If you want to learn more about MLM and plan on establishing a business out of it with no MLM account, then check out this blog about why it might be a good option for you.
Also known as direct marketing, referral, or network marketing, MLM has become increasingly popular despite being a controversial subject in the marketing field. Its popularity is that it allows earning extra or passive income while still balancing work and family life. Check out some of the most popular MLM businesses in Canada!
What is MLM?
Multilevel Marketing is a sale and marketing strategy adopted by some companies to rev up their sales. The marketing design allows the already hired distributors to employ more individuals as salespersons. While the existing distributors get a percentage of the sales made by their newly recruited team, they are also dealing with direct sale deals at their end.
In this way, multiple downlines are created where everybody is making an earning. It thereby creates a ripple effect on the overall profits and sales of the parent company.
Why MLM draws a debate? The reason is the working of its module, which we call ‘Pyramid marketing.’ This partnership selling is sometimes called networking marketing, and it involves paying the sellers at the top out of young recruits’ sales.
The sellers at the top do not put in effort regarding sales and marketing but are involved in hiring new faces. This way, they keep on getting paid without any work done.
Such marketing tactics are identifiable because their whole focus remains to employ new sales representatives rather than actual product sales. If a company or a company’s representative sells its products directly to consumers, it is legit MLM. If they try to sell the product to its members, who, in turn, recruit new members to buy the products, it is the pyramid type.
So if you are starting an MLM business for your own company or trying to get integrated into one dealing with MLM, be wary of the pyramid structure.
Why Should I Register My MLM?
Registering your MLM will help you reap benefits that are both short and long-term. First of all, registering will protect you from getting into trouble with the Canada Revenue Agency (CRA).
Then it will also minimize your tax and personal liability. Registering your MLM company will help build brand awareness for your product line and bring you many more profitable opportunities by shaping reputation in the marketing community. You can sell off your business if required if you are a registered MLM Company.
Registering your MLM will give you some greater responsibilities than you’ve previously had. Here’s what you need to do to get ready to register your business and how to easily navigate your bookkeeping and all once you have registered.
How Do I Get Ready to Register My MLM?
Whether you are designing an MLM home-based business or starting an MLM company, doing your homework on how to start a multilevel marketing company would save you from many stresses in the future.
1. Set Up Your Office Space
If you have been operating your MLM online, then you must be working from your home. While staying home and working, like in the COVID-19 situation, maybe safe and convenient, it can sometimes be dull and boring. Some may find it challenging to stay motivated and organized.
If you have an office space in your home, make sure you invest in a suitable desk and chair. Try to decorate your area so that you look forward to going into your office every morning! A well-lit, organized, and neat office or workspace keeps the morale high.
Suppose you do not have an office space and work from your kitchen; that is okay too! Try to keep your work area as separate from your living space as possible, and keep your supplies organized. We recommend getting some office gadgets that help you put away your work papers and all tidily and effortlessly, such as a file holder, file cabinet, etc.
2. Organize Your Paperwork
As regards business filing, Define yourself as being a paper person or if you prefer to keep all of your documents as digital format. If you are a paper person, you’ll want to adopt a good filing system and stick with it, which could be a filing drawer that you organize monthly or quarterly. If you prefer to have a paperless filing system, take photos of your receipts and documents, save them on a hard drive, or use an app like Hubdoc.
Tracking your business mileage is just as important as keeping your business expense receipts! Click here to download our free Mileage Log. You can use this on your phone, or print it off and keep it in your car. Be sure to include this log in your filing system.
Having your receipts and business documents organized and easily-accessible will be a big help when you register your business and when tax season comes.
3. Choose a Name For Your Business
When you register your business, you will need to register it under a business name. Naming your business is a big task. We recommend choosing a name that clearly represents what you do, and it is easy for people to read/pronounce. If you register your business as a corporation, you can also name your business with a number, or you may want to learn how to incorporate an LLC … but more on that later!
Choosing a name for your business does not have to be stressful. CorePro8 can guide you through the steps to starting a business, including best practices for choosing a business name or number. Learn more about CorePro8 here.
4. Determine Your Main Office Location
When you register your business, you will need to determine the province/territory from where you are operating. You must identify the exact location of your office. If you plan to continue working out of your home address, this would be considered your main office.
5. Decide How You Will Register Your MLM Business
Deciding whether to register as a sole proprietor or a corporation can be complicated if you don’t understand what they are how they differ. If you want to know more, check out our video on the difference between sole proprietorship and corporation.
Let CorePro8 Guide You
CorePro8 is the one-stop-shop to set up your MLM business correctly. It guides you step by step to start a company beginning with all the details you need to register. It also gives you advice on bookkeeping, taxes, and how to pay yourself. No need to search the internet for information on each step; CorePro8 has everything you need to set up your business. Learn more about CorePro8 here.
You are killing it with your MLM, and you love what you do each day. CorePro8 will help you organize your business essentials and make registering your business a stress-free process so you can focus on what you enjoy.
Let CorePro8 Guide You
CorePro8 is the one stop shop to set up your MLM business correctly. It guides you step by step on how to start a business beginning with all the details you need to register. It also gives you advice on bookkeeping, taxes, and how to pay yourself. No need to search the internet for information on each step, CorePro8 has everything you need to set up your business. Learn more about CorePro8 here.
You’re killing it with your MLM and you love what you do each day. CorePro8 will help you organize your business essentials and make registering your business a stress-free process so you can focus on what you enjoy.