The Advantages of Being a Sole Proprietor in the Philippines (Tax Tips Tuesdays Ep. 1)

In this inaugural episode of Tax Tips Tuesdays, husband & wife/co-founders of, Ej and Ginger Arboleda talk about the advantages of being a sole proprietor in the Philippines — in terms of business structure as well as taxes.

When do we need to register as a Sole Proprietor in the Philippines?

Once you have a brick and mortar store, an ecommerce site, good and stocks that you maintain, etc., you will need to register as a sole proprietorship in the Philippines.

How do I register a Sole Proprietorship Business?

It’s easy to set up a Sole Proprietorship in the Philippines (at least as compared to a Corporation or a Partnership). To set up a Sole Proprietoship in the Philippines, it requires going to 3 government agencies: DTI, LGU or Municipal Hall and Baranggay and the Revenue District Office of BIR in the city of your business address. Note that you are not COMPLETELY REGISTERED as a Sole Proprietorship if you do not have documents from these three departments.

If you are from Metro Manila, we here at Taxumo, can help you register as a Sole Proprietor. All you need to do is go to the link below and collate all the documents indicated in STEP 1.

If you have any questions about registering a Sole Proprietorship, feel free to message us using the chat button in this site.

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4 thoughts on “The Advantages of Being a Sole Proprietor in the Philippines (Tax Tips Tuesdays Ep. 1)”

  1. Hi I’m still employed and would like to start a business. Can I register as a sole proprietor para ofis pa din ung magasikaso ng tax ko as an employee?

    Thank you.

  2. Hi, I am currently employed and want to run an online selling business. I already have clearance from our HR since it is not related to our company’s business. My questions are:
    Since I need BIR Permit as a requirement and to pay my obligations,
    – Am I legally allowed to apply for a BIR Permit while employed?
    – How do I file my Sole Proprietary Business in BIR? I do have applied for a DTI Permit btw.
    – How will my tax be calculated and how much will I be paying for my business?
    – What would be the recommended way to do this, without breaking any laws?
    – Will my employer see my submitted revenue for my business?

    Please make a detailed post about it because I am sure that so many full time employee like me who has cmare honest that wants to do this… The Right Way!

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