Last month, a founder came to us with a problem.
She’d spent ₱30,000 and still didn’t have a single official receipt. She registered as a Sole Proprietor because someone told her it was the fastest. Three months later, she learned she couldn’t apply for the permits her industry required.
By the time she tried to fix it, she had to start from scratch and pay penalties.
What felt like a shortcut became the most expensive decision she ever made.
What Most Founders Don’t Realize
Your business structure decides how you’re taxed, who owns your company, and what you’re allowed to do.
Pick wrong, and you could:
- Pay up to 30% in taxes instead of 8%.
- Lose access to government programs.
- Get stuck with ownership limits you can’t undo.
And yet, most first-time entrepreneurs rush it.
They just want it done. They ask a fixer to file whatever’s fastest, without asking what it means. But they rarely explain consequences, and just process papers.
Your registration isn’t just paperwork.
It’s the foundation.
The structure you choose decides if you grow massively or hit walls later. Think of it as the foundation of a house. If you build it wrong, and everything else cracks.
So before you register, ask yourself:
- Who owns this business now, and who might later?
- Do I plan to raise capital or stay solo?
- What kind of clients or permits will I need?
Answer those clearly, and the right structure almost picks itself.
So, Which One’s For You?
- Sole Proprietorship — best for local freelancers or tiny solo businesses.
- One Person Corporation (OPC) — for founders who want growth and limited liability without partners.
- Domestic Corporation — for teams, investors, or businesses with foreign ownership.
Choose based on where you’re going.
Because changing later means new documents, new taxes, and starting all over again.
Before You Register
Don’t just file and hope.
Learn what each option really means. Ask questions. And treat registration as the first smart decision in your business, not an errand to check off the list.
If you want to go deeper into this, we made something for you.
It’s the Business Registration Blueprint: a free 5-day email course that breaks down the biggest mistakes founders make when registering in the Philippines.
It’s practical, simple, and takes 5 minutes a day.
You’ll know exactly which structure fits your goals, and how to file it right the first time.
