Why would you register a company instead of a business name or a sole proprietorship? A sole proprietorship is owned by one person, but a company is a separate legal entity. That means the company can own property, enter contracts, and incur debts in its own name. A company offers limited liability, so your personal assets are generally protected from business debts. If you're planning to grow your business, bring in investors, or separate your personal assets from the business, a company may be