There are many different kinds of business ownership. One of these is sole proprietorship, the kind of business that’s registered as owned by only one individual.
The simplest type of business ownership, the sole proprietorship is an unincorporated entity or business. It’s a popular type of business for individual self-contractors, consultants, and many businesses.
Benefits of Sole Proprietorship
This type of business is great for small business owners and contractors, mostly because it is easy to establish, the owner only pays personal income tax on the profits, and can be easily dismantled if the owner no longer wants to do business.
Although a number of businesses are actually owned by couples or the family, many are registered as sole proprietorship instead of as a corporation.
The main benefits include:
- Minimal capital required
- Lower costs of government registration fees, permits, and licenses
- Minimal regulations and monitoring
- Run business on your own
- Earn profits for yourself
Disadvantages of Sole Proprietorship
But the sole proprietorship also has its disadvantages:
- Suffering all risks, liabilities, losses are suffered on your own
- Government agencies or creditors can run after your personal assets
How to Register a Sole Proprietorship with DTI
If you’ve made up your mind that you’ll already start a business as a sole proprietorship, then one of the first steps you need to do is to register with the DTI (Department of Trade and Industry).
Here are the steps to follow:
- Step 1. Come up with three possible names for your business.
- Step 2. Search the DTI website if there’s an existing business with the same name as your planned names. Click here.
- Step 3. If the business name is available, fill out the Business Name (BN) Application Form.
- Step 4. Go to the nearest DTI office and submit the filled-out form. Or you can do this step online.
- Step 5. Pay the relevant fees and wait for the DTI Certificate of Registration.
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