Setting Up Your Business in the Philippines 2

There are 3 business forms that you need to decide on.  Single Proprietorship, Partnership and Corporation.

The taxation, finances, decision making and business model greatly depends on the type of business you pick. 

Here’s a small jist of the forms of businesses just to give you an idea of what they are:

Single or Sole Proprietorship:

This type is owned by a single owner. The gains and liabilities, operations and decision making is all on the owner. Taxes are also shouldered by the owner himself.  It is the simplest form to set up.

Partnership:

As the name connotes, there are two or more owners sharing control of the business. It may be equally divided or otherwise as stated by their agreement. Just like the first type of business the taxes are also shouldered by the owners meaning they are taxed on their individual rates.

Corporation:

There are no limits to the number of owners of a corporation. The owners of the corporation are called shareholders.  All profits are divided among the shareholders and are taxed individually. However the corporation itself is a separate entity and pays it’s taxes at a different type of rate. 

Since I would be setting up a business that I alone owns, I would be documenting my journey as I go along. I certainly hope that it helps other entrepreneurs as well.