Starting a business is an exciting milestone, but one of the first legal steps every entrepreneur should take is registering the business with the Corporate Affairs Commission (CAC). Registering your business name not only gives your business legal recognition but also enhances credibility with customers, suppliers, financial institutions, and investors. Many entrepreneurs delay registration because they believe the process is complicated or expensive. In reality, with the right guidance, registering a business name in Nigeria is relatively straightforward. This guide explains how to register a business name in Nigeria, the eligibility requirements, the registration process, and common mistakes to avoid. What Is a Business Name? A business name is the name under which an individual, two or more individuals, or certain entities carry on business. Unlike a company, a business name does not create a separate legal entity distinct from its proprietor or proprietors. Business names are commonly used by: Sole proprietors. Partnerships. Small and medium-sized enterprises (SMEs). Family-owned businesses. Professional service providers. Choosing the appropriate business structure depends on your commercial objectives and legal needs. Why Should You Register Your Business Name? Registering a business name offers several benefits, including: Legal recognition of your business. Increased credibility with customers and suppliers. Easier access to corporate bank accounts. Improved opportunities to secure contracts. Greater confidence for investors and business partners. Compliance with applicable legal requirements. Operating an unregistered business where registration is required may expose the proprietor to avoidable legal and commercial challenges. Who Can Register a Business Name? Generally, a business name may be registered by: An individual carrying on business. Two or more individuals carrying on business in partnership. Other eligible persons or entities as permitted by applicable law. Applicants should ensure they meet the legal requirements before commencing the registration process. Step 1: Choose a Suitable Business Name Select a name that reflects the nature of your business and is not identical or confusingly similar to an existing registered name. When choosing a name, avoid words or expressions that require special approval unless such approval has been obtained. A distinctive and memorable name can also strengthen your brand. Step 2: Conduct a Name Availability Search Before applying for registration, it is advisable to confirm that your proposed business name is available for registration. If the name is unavailable, you will need to choose another name before proceeding. Step 3: Prepare the Required Information Depending on the applicable requirements, you may need information such as: Proposed business name. Nature of the business. Business address. Full names of the proprietor or proprietors. Means of identification. Email address and telephone number. Passport photograph, where required. Ensure that all information provided is accurate and consistent. Step 4: Complete the Registration Application The application is submitted to the Corporate Affairs Commission together with the required information and prescribed fees. Before submission, carefully review the application to ensure that all details are correct. Step 5: Await Approval Once the application has been reviewed and approved, the Corporate Affairs Commission will issue evidence of registration. You should keep your registration documents safely, as they may be required when opening a business bank account, bidding for contracts, or dealing with regulatory authorities. Common Mistakes to Avoid Business owners often make mistakes such as: Choosing a name that is already registered. Providing inaccurate information. Using inconsistent names across documents. Registering the wrong business structure. Failing to keep registration details up to date. Assuming registration automatically protects their brand as a trademark. Avoiding these mistakes can save time and prevent future legal complications. Does Registering a Business Name Protect Your Brand? Not necessarily. Registering a business name and registering a trademark are different legal processes. A business name registration gives legal recognition to the business, while trademark registration protects eligible brand names, logos, and other distinctive marks used in trade. Businesses seeking stronger brand protection should consider whether trademark registration is appropriate. Why Legal Advice Is Important Although business name registration is generally straightforward, legal advice can help you choose the most appropriate business structure and avoid costly mistakes. A lawyer can assist by: Advising on the appropriate business structure. Conducting preliminary checks. Preparing and reviewing registration information. Advising on regulatory compliance. Assisting with post-registration legal requirements. Advising on trademark protection and commercial agreements. Professional guidance helps ensure that your business starts on a sound legal foundation. How Lexforte Attorneys Can Help At Lexforte Attorneys, we assist entrepreneurs, startups, SMEs, and established businesses with a wide range of corporate and commercial legal services. Our services include: Business name registration. Company incorporation. Corporate advisory. Trademark registration. Contract drafting and review. Regulatory compliance. Corporate governance. We are committed to helping businesses establish and grow with confidence by providing practical, timely, and reliable legal solutions. Conclusion Understanding how to register a business name in Nigeria is an important first step for anyone starting a business. Registration enhances your credibility, supports compliance with the law, and positions your business for growth. However, registration is only the beginning. Choosing the right business structure, protecting your brand, and obtaining appropriate legal advice can help your business avoid future challenges and operate successfully. Thinking of starting a business? Contact Lexforte Attorneys for professional assistance with business name registration, company incorporation, and corporate legal advisory services.
Business Name vs Limited Liability Company in Nigeria: Which Should You Choose?
One of the first decisions every entrepreneur must make is choosing the right legal structure for a business. Many people are unsure whether to register a Business Name or incorporate a Limited Liability Company (Ltd). While both structures allow you to operate legally in Nigeria, they are not the same. The structure you choose can affect your legal liability, ability to raise funds, credibility, taxation, ownership, and long-term growth. Understanding the differences between a business name vs limited liability company in Nigeria will help you make an informed decision. What Is a Business Name? A Business Name is a form of business registration that allows an individual or partners to carry on business under a registered name. Although the business acquires legal recognition through registration, it is not a separate legal entity from its proprietor or partners. In many situations, the rights and obligations of the business are effectively those of the proprietor or partners. Business names are commonly used by: Sole proprietors. Small businesses. Family businesses. Professional service providers. Startups testing a business idea. For many entrepreneurs, it offers a relatively simple way to begin operations. What Is a Limited Liability Company? A Limited Liability Company is a company incorporated under Nigerian law. Unlike a business name, a company has a separate legal personality. This means it can generally: Own property in its own name. Enter into contracts. Sue and be sued. Continue to exist despite changes in ownership, subject to the law. Its affairs are managed through its directors and shareholders in accordance with the applicable law and its constitutional documents. Key Differences Between a Business Name and a Limited Liability Company 1. Legal Status This is perhaps the most significant difference. A Business Name is not separate from its proprietor or partners. A Limited Liability Company is a separate legal entity recognised by law. This distinction has important legal and commercial consequences. 2. Liability One of the principal advantages of incorporating a company is the concept of limited liability. Subject to the law and the particular circumstances of a case, shareholders of a company generally enjoy limited liability for the company’s obligations. By contrast, proprietors of a business name may, in many circumstances, bear personal responsibility for the obligations of the business. However, limited liability is not absolute, and there are situations in which directors, shareholders, or other persons may still incur personal liability. 3. Ownership Structure A business name is usually owned by one individual or by partners. A company is owned by shareholders and managed by directors. This structure often makes it easier to admit new investors or transfer ownership interests. 4. Ability to Raise Investment Investors often prefer dealing with incorporated companies because they provide a recognised corporate structure for ownership and governance. A company can generally issue shares and accommodate changes in shareholding more easily than a business name. For businesses intending to attract investors or expand significantly, incorporation may be the more suitable option. 5. Business Continuity The continued existence of a business name may be closely connected to its proprietor or partners. A company, on the other hand, enjoys perpetual succession, meaning its existence is generally not affected simply because a shareholder or director dies, resigns, or transfers their interest. This makes companies more suitable for long-term business planning. 6. Credibility Many customers, investors, financial institutions, and government agencies regard incorporated companies as having a more formal business structure. Although many successful businesses operate under business names, incorporation may enhance credibility in certain commercial transactions. 7. Compliance Requirements A company generally has more legal and regulatory obligations than a business name. These may include maintaining corporate records, complying with statutory filing requirements, and observing corporate governance obligations. Business names also have legal obligations, but they are generally less extensive than those applicable to companies. Which Structure Is Right for You? A Business Name may be appropriate if you: Are starting a small business. Are the sole owner or have a small partnership. Want a relatively simple business structure. Do not presently intend to raise external investment. A Limited Liability Company may be more appropriate if you: Intend to grow the business significantly. Wish to attract investors. Expect to enter into substantial commercial contracts. Want a more structured ownership arrangement. Require a corporate identity for long-term operations. The most appropriate structure depends on your business objectives and should be determined after considering your legal and commercial needs. Can You Convert a Business Name to a Company? Many entrepreneurs begin with a business name and later incorporate a company as their business expands. The appropriate steps depend on the circumstances and applicable legal requirements. Before making the transition, it is advisable to obtain legal and professional advice to ensure that contracts, licences, assets, tax obligations, and regulatory requirements are properly addressed. Common Mistakes Entrepreneurs Make When choosing a business structure, entrepreneurs often: Select a structure without considering future growth. Ignore ownership and governance issues. Assume a business name provides the same legal protection as a company. Delay obtaining legal advice until disputes arise. Fail to understand ongoing compliance obligations. Avoiding these mistakes can save considerable time and expense. Frequently Asked Questions Is a Limited Liability Company better than a Business Name? Not necessarily. Neither structure is universally better. The right choice depends on factors such as the nature of the business, the level of risk, future expansion plans, investment needs, and regulatory requirements. Can a Business Name become a Limited Liability Company later? Yes. Many entrepreneurs begin with a business name and later incorporate a company as their operations expand. The transition should be planned carefully to address legal and commercial issues. Which is more suitable for startups? It depends on the startup’s objectives. A small business testing a new idea may find a business name sufficient at the early stage, while a startup seeking investment or rapid growth may benefit from incorporating a company. Why Legal Advice Matters Choosing a business structure is more than an administrative decision. It can affect
How to Register a Company in Nigeria: A Step-by-Step Guide
Starting a business is an exciting milestone, but one of the first legal steps towards building a successful and credible enterprise is registering your company. Incorporating a company not only gives your business a distinct legal identity but also enhances its credibility with customers, investors, financial institutions, and regulatory authorities. Understanding how to register a company in Nigeria is essential for entrepreneurs, startups, and investors who want to operate lawfully and position their businesses for long-term growth. This guide explains the registration process, key requirements, and common mistakes to avoid. Why Register a Company? Registering a company offers several legal and commercial advantages, including: Creating a separate legal entity distinct from its owners. Enhancing the credibility of the business. Improving access to business financing and investment opportunities. Enabling the business to enter into contracts in its own name. Protecting the business name from use by another registered company. Facilitating business growth and continuity. For many businesses, incorporation is an important step towards long-term success. Which Businesses Should Register a Company? While some entrepreneurs may operate under a business name depending on the nature and scale of their activities, incorporating a company may be more appropriate where the business intends to: Raise investment. Limit the liability of its owners. Enter into significant commercial contracts. Expand operations. Build a long-term corporate structure. The most suitable business structure depends on the objectives of the founders and the nature of the business. Step 1: Choose a Suitable Company Name The first step in how to register a company in Nigeria is selecting a suitable name. When choosing a company name: Ensure it is unique and distinguishable. Avoid names that are prohibited or misleading. Ensure the proposed name does not conflict with existing registered names or applicable legal restrictions. If the preferred name is unavailable, alternative names may need to be considered. Step 2: Decide on the Company’s Structure Before registration, the founders should determine important matters such as: The type of company to be incorporated. The business objectives. The proposed shareholders. The directors. The company’s registered office. The share structure. Careful planning at this stage can prevent future disputes and operational challenges. Step 3: Prepare the Required Information The information required for incorporation generally includes: Approved company name. Details of the directors. Details of the shareholders or subscribers. Registered office address. Nature of the business. Share capital and shareholding structure. Means of identification for relevant persons. Other information required by law or the Corporate Affairs Commission (CAC). The exact requirements may vary depending on the nature of the company. Step 4: Submit the Incorporation Application Once the necessary information has been prepared, the incorporation application is submitted to the Corporate Affairs Commission (CAC). The application is reviewed to ensure compliance with the applicable legal requirements before registration is completed. Where additional information or corrections are required, the applicant may be requested to provide them. Step 5: Obtain the Incorporation Documents Upon successful registration, the company is issued with its incorporation documents. These documents serve as evidence that the company has been duly incorporated and may include other statutory information maintained by the Corporate Affairs Commission. Businesses should keep these documents safely, as they are frequently required when opening bank accounts, bidding for contracts, obtaining licences, or entering into significant transactions. What Documents May Be Needed? Depending on the circumstances, the incorporation process may require documents such as: Means of identification for directors and shareholders. Passport photographs, where applicable. Proof of address where required. Information relating to the company’s registered office. Other supporting documents required by the Corporate Affairs Commission. Professional guidance can help ensure that all necessary documentation is properly prepared. Common Mistakes to Avoid Entrepreneurs sometimes delay or complicate the incorporation process by: Choosing a name without checking its availability. Providing inaccurate information. Selecting an unsuitable shareholding structure. Appointing directors without understanding their legal responsibilities. Using incorrect business objectives. Ignoring post-incorporation compliance requirements. Avoiding these mistakes can make the registration process smoother and reduce future legal risks. What Happens After Incorporation? Registering a company is only the beginning. After incorporation, a company may need to consider additional matters such as: Obtaining a Tax Identification Number (TIN), where applicable. Opening a corporate bank account. Maintaining statutory registers and corporate records. Holding meetings and keeping company records where required. Obtaining industry-specific licences or permits. Complying with tax and regulatory obligations. Protecting trademarks and other intellectual property where necessary. The applicable obligations depend on the nature of the company’s business. Why Professional Legal Advice Matters Although company registration has become more accessible, incorporation involves legal and commercial decisions that may affect the future of the business. A lawyer can assist by: Advising on the appropriate business structure. Preparing incorporation documentation. Advising on directors’ and shareholders’ rights and obligations. Drafting shareholders’ agreements where necessary. Advising on regulatory compliance. Providing post-incorporation corporate advisory services. Obtaining legal advice at the outset can help entrepreneurs establish a stronger legal foundation for their businesses. How Lexforte Attorneys Can Help At Lexforte Attorneys, we provide comprehensive corporate and commercial legal services to entrepreneurs, startups, investors, and established businesses. Our services include: Company registration and incorporation. Corporate restructuring. Corporate governance advisory. Drafting shareholders’ agreements. Regulatory compliance advisory. Commercial contract drafting and review. Corporate secretarial support. Business advisory services. We work with clients to ensure that their businesses are established on a sound legal foundation and remain compliant as they grow. Frequently Asked Questions Can one person register a company in Nigeria? Yes. Subject to the applicable provisions of Nigerian law, it is possible for a company to be incorporated with a single shareholder and a single director where the law permits. How long does company registration take? The time required depends on factors such as the completeness of the application, the availability of the proposed company name, and the processing time of the Corporate Affairs Commission. Can a foreigner register a company in Nigeria? Yes. Foreign investors may register companies in Nigeria, but additional legal and regulatory requirements may apply depending on
Business Partnership Disputes in Nigeria: What to Do When Business Partners Disagree
Starting a business with another person can provide valuable financial resources, skills, experience, and ideas. However, disagreements between business partners can arise even when the business relationship starts on good terms. Disputes may involve money, ownership, management, business decisions, profit sharing, responsibilities, or the future direction of the business. When these disagreements are not properly addressed, they can damage the business and sometimes result in costly litigation. Understanding business partnership disputes in Nigeria and knowing how to respond can help business owners protect their interests and, where possible, preserve the business relationship. What Is a Business Partnership Dispute? A business partnership dispute occurs when two or more persons involved in a business disagree over matters affecting their business relationship or the operation of the business. Common areas of disagreement include: Ownership interests. Capital contributions. Profit sharing. Business expenses. Management and control. Financial records. Withdrawal of funds. Business decisions. Responsibilities of the partners. Admission of new partners. Transfer of ownership interests. Dissolution of the business. Some disagreements are minor and can be resolved through discussion. Others can fundamentally affect the survival of the business. Common Causes of Partnership Disputes 1. Unclear Ownership Arrangements Problems often arise where the parties never clearly documented how ownership of the business is divided. For example, two founders may contribute different amounts of money, skills, property, or other resources without agreeing how those contributions translate into ownership. This can create serious disagreements when the business becomes profitable. 2. Disagreements Over Money Financial disagreements are among the most common causes of business disputes. Partners may disagree over: How profits should be distributed. Whether money should be reinvested. Business expenses. Salaries or drawings. Loans to the business. Use of company funds. Proper financial records and clearly defined financial arrangements can help reduce these disputes. 3. Disagreements Over Management Partners may have different ideas about how a business should operate. One partner may want to expand aggressively while another prefers a more cautious approach. Disputes may also arise regarding: Hiring employees. Taking loans. Entering major contracts. Opening new branches. Selling business assets. Changing the business model. A properly structured governance arrangement can establish how important decisions are made. 4. Failure to Define Roles and Responsibilities A business can become dysfunctional when partners do not know who is responsible for particular aspects of the business. A partnership or shareholders’ agreement can clearly establish the responsibilities of each partner and create accountability. 5. Lack of a Written Agreement One of the biggest causes of business partnership disputes in Nigeria is the failure to properly document the relationship between business owners. Trust may be sufficient to start a business, but it may not be sufficient to resolve disagreements later. A written agreement can address important matters such as: Ownership. Contributions. Profit sharing. Management. Decision-making. Transfer of interests. Exit arrangements. Dispute resolution. What Should You Do When a Dispute Arises? Step 1: Review Your Agreement If the business relationship is governed by a partnership agreement, shareholders’ agreement, articles, or another contractual arrangement, review the relevant documents first. They may contain procedures for resolving disagreements. Step 2: Gather the Relevant Records Preserve documents relating to the dispute, including: Agreements. Financial statements. Bank records. Company records. Emails. Messages. Meeting minutes. Invoices and receipts. These documents may become important if the dispute escalates. Step 3: Communicate Clearly Not every disagreement requires immediate legal action. Where appropriate, the partners should identify the specific issues in dispute and attempt to find a practical solution. Keeping communications professional can also make future negotiations easier. Step 4: Consider Mediation Mediation can provide a structured environment for business partners to attempt to resolve their differences with the assistance of a neutral third party. It can be particularly useful where the parties want to preserve their business relationship. Possible outcomes may include: Revised responsibilities. New financial arrangements. Changes to management. Buy-out arrangements. Agreed exit terms. Step 5: Obtain Legal Advice Where the dispute involves significant money, ownership, company control, or potential litigation, legal advice should be obtained early. A lawyer can review the relevant documents and explain the legal rights and obligations of each party. What If One Partner Is Misusing Business Funds? This can be a particularly serious situation. If a partner is suspected of improperly taking or using business funds, the appropriate response will depend on the circumstances and the structure of the business. Relevant financial and corporate records should be preserved, and professional legal advice should be obtained before taking significant action. Depending on the facts, legal remedies may be available to protect the business and other owners. Can a Partner Be Removed From a Business? Whether a partner or shareholder can be removed depends on the legal structure of the business, the governing documents, applicable legislation, and the circumstances. A business owner should not assume that they can simply remove another owner because they disagree with them. The appropriate legal procedure should be determined before taking action. What Happens If the Partners Cannot Agree? Where negotiation and mediation fail, other dispute-resolution options may become necessary. Depending on the circumstances and the applicable agreement, these may include: Arbitration. Court proceedings. Buy-out arrangements. Restructuring. Dissolution or winding up of the business. The appropriate option depends on the nature of the dispute and the objectives of the parties. How to Prevent Partnership Disputes The best time to address potential disagreements is before they arise. Business owners should consider having a properly drafted agreement covering: Ownership interests. Capital contributions. Profit and loss sharing. Management responsibilities. Decision-making procedures. Restrictions on transferring interests. Confidentiality. Intellectual property. Exit arrangements. Death or incapacity of a partner. Dispute resolution. A well-drafted agreement can provide a roadmap for dealing with difficult situations. Partnership Agreement vs Shareholders’ Agreement The appropriate document depends on the legal structure of the business. A partnership agreement is generally relevant to a partnership arrangement, while shareholders’ agreements are commonly used in companies to regulate relationships among shareholders. The terminology and legal consequences should therefore not be treated as interchangeable. Professional advice can help
Legal Mistakes Small Businesses Make and How to Avoid Them
Running a small business involves much more than selling products or providing services. Business owners must also deal with contracts, employees, customers, suppliers, taxes, intellectual property, regulatory requirements, and potential disputes. Unfortunately, many small businesses focus so heavily on day-to-day operations that they overlook important legal issues. What appears to be a minor oversight at the beginning can later result in financial losses, disputes, regulatory problems, or expensive litigation. Understanding the legal mistakes small businesses make is therefore essential for entrepreneurs who want to protect their businesses and build sustainable operations. Here are some of the most common legal mistakes small businesses should avoid. 1. Operating Without Proper Registration Some entrepreneurs begin trading without considering whether their business structure and registration are appropriate for their activities. Depending on the nature of the business, this may create problems relating to ownership, liability, taxation, regulation, and future investment. Business owners should obtain appropriate legal and professional advice on the structure best suited to their business and ensure that required registrations are completed. 2. Relying on Verbal Agreements Trust is important in business, but important transactions should not be based solely on verbal promises. Business relationships with customers, suppliers, contractors, investors, and partners should generally be supported by appropriate written agreements. A written contract provides evidence of what the parties agreed to and helps establish their respective rights and obligations if a disagreement arises. 3. Using Poorly Drafted Contracts Another common mistake is using generic contracts without considering whether they actually address the specific transaction. A business contract should clearly deal with matters such as: The parties’ obligations. Payment terms. Delivery or performance. Confidentiality. Intellectual property. Termination. Liability. Dispute resolution. A poorly drafted contract may create uncertainty instead of preventing it. 4. Failing to Protect Intellectual Property A business may spend years building its name and reputation but fail to protect the intellectual property associated with the brand. Important business assets may include: Trademarks. Logos. Product designs. Software. Written content. Inventions. Trade secrets. Business owners should identify their intellectual property and take appropriate steps to protect and manage it. 5. Hiring Employees Without Proper Documentation Some small businesses employ people without written employment contracts or clear workplace policies. This can create uncertainty regarding: Salary and benefits. Duties and responsibilities. Working hours. Confidentiality. Leave. Discipline. Termination. Proper employment documentation protects both the employer and the employee and can significantly reduce workplace disputes. 6. Ignoring Tax and Regulatory Obligations A business may be profitable while still exposing itself to legal and financial risks if it fails to comply with applicable tax or regulatory obligations. Business owners should understand the obligations applicable to their particular business and maintain appropriate records. Where a business operates in a regulated industry, additional licences, permits, approvals, or compliance requirements may apply. 7. Mixing Personal and Business Finances Small business owners sometimes treat business funds as if they were personal money. This can create accounting, tax, ownership, and governance problems, particularly as the business grows. Maintaining proper financial records and separating personal and business transactions can make it easier to monitor the business and demonstrate its financial position. 8. Failing to Conduct Due Diligence Before entering an important business transaction, some entrepreneurs rely entirely on what the other party tells them. This can be risky. Before entering significant transactions, businesses should consider appropriate due diligence concerning: The identity and authority of the other party. Ownership of relevant assets. Existing liabilities. Regulatory requirements. Existing contractual obligations. Potential litigation. Proper due diligence can reveal problems before the transaction is completed. 9. Ignoring Unpaid Debts Small businesses frequently provide goods or services on credit without establishing clear payment terms or procedures for recovering outstanding debts. Unpaid invoices can create serious cash-flow problems. Businesses should have clear payment terms and maintain proper records of transactions. Where a customer refuses to pay, obtaining legal advice early can help determine the most appropriate recovery strategy. 10. Failing to Protect Confidential Information Businesses often possess valuable information about customers, suppliers, pricing, business strategies, processes, and operations. Allowing employees, contractors, or business partners unrestricted access to sensitive information without appropriate safeguards can expose the business to significant risks. Confidentiality obligations and appropriate contractual protections can help safeguard valuable business information. 11. Signing Contracts Without Understanding Them Business owners sometimes sign agreements simply because they trust the other party or because they are eager to complete a transaction. This can be costly. Before signing an important contract, a business should understand: What it is agreeing to do. What the other party must do. How and when payment will be made. How the contract can be terminated. What happens if either party breaches the agreement. How disputes will be resolved. Whether there are limitations on liability. A legal review before signing can identify problematic provisions and provide an opportunity to negotiate better terms. 12. Waiting Until There Is a Dispute Before Seeking Legal Advice One of the biggest legal mistakes small businesses make is treating legal advice as something needed only when a lawsuit has already been filed. Legal advice can be preventive as well as reactive. A lawyer can help a business identify risks before they become disputes by reviewing contracts, advising on employment matters, protecting intellectual property, and assisting with regulatory compliance. Preventing a legal problem is often considerably easier and less expensive than resolving one after it has escalated. How Small Businesses Can Reduce Legal Risks Small businesses can take several practical steps to reduce their exposure to legal problems: Use appropriate written contracts. Keep accurate business records. Protect intellectual property. Document employment relationships. Comply with applicable tax and regulatory requirements. Conduct due diligence before major transactions. Monitor outstanding debts. Protect confidential information. Seek legal advice before entering significant transactions. Review important legal arrangements periodically. These measures can help create a stronger legal foundation for the business. Why Legal Advice Is an Investment, Not Just an Expense Many small business owners hesitate to engage lawyers because they see legal fees as an additional business expense. However,