08/12/2025
⏳ 23 DAYS LEFT BEFORE THE NEW TAX LAW TAKES EFFECT
Small business owners, please come closer — this message concerns you directly.
Many people believe that registering a business as a Business Name automatically makes it a company.
It doesn’t.
And this misunderstanding is about to cost a lot of small business owners money next year.
Here’s What You Need to Know
If your business is registered as a Business Name, the law sees you and the business as the same person.
Meaning:
Whatever money the business makes = your personal income.
Once your 2026 profit crosses ₦800,000, you will be required to pay Personal Income Tax.
So, someone running a POS business, fashion brand, food business, logistics, beauty brand, tech service, or any small scale hustle will automatically fall into this category once your business grows — even a little.
Now, Let’s Compare With a Limited Liability Company (LLC)
When you register as an LLC, the business becomes separate from you legally and financially.
Under the new rule:
If your company’s turnover is less than ₦25 Million, you pay no company tax.
Even if your turnover is above ₦25 Million, you can first deduct business expenses like:
✔ Rent
✔ Transport/Fuel
✔ Salary
✔ Logistics
✔ Repairs/maintenance
✔ Operational costs
After these deductions, the remaining profit is what government can tax — and for most small businesses, it won’t even reach the threshold.
Example:
A POS business may process ₦500 Million in transactions in 2026.
Profit? Maybe ₦6 Million.
As a Business Name:
She pays Personal Income Tax because she earned over ₦800k.
As an LLC:
She pays nothing because her profit did not reach ₦25 Million.
That’s the difference financial structure makes.
Bottom Line?
If your business is still under Business Name, don’t wait until you’re frustrated or fined.
Upgrade to an LLC now.
From January, prices for LLC registration will go up because everyone will rush it.
Take the Smart Move Today.
Contact us now and begin the upgrade process.
Your business deserves a structure that protects your income, reduces your tax burden, and gives you room to grow — not one that drains your profit.
Financial wisdom isn’t just about making money — it’s about keeping it.
WhatsApp/Call: 07062096562