Business entity to register your startup
So I have here in my blog some business entities I somewhat knew that exist here in the Philippines.
So first, is it recommended to register your startup immediately?
And what is the recommended business entity to register your startup even if not immediately?
ideally its a corporation and requires PHP5,000 in capital for the bank account ( though banks require 10k as a minimum deposit, deposit 10k, withdraw the extra 5 )
ive been through corporation creation 3 times and its paperwork and stuff and forces you to do your BIR monthly and Mayors Permit renewals yearly, so its a lot of work if you arent earning anything yet.
My first question would be do you need to setup a legal entity? If you are doing market research or building a product, then you dont really need any legal entity.
Maybe if you have serious investors and they want legal frameworks to protect their money, but if you are getting money from tito, tita, parents etc, then not needed really.
All serious businesses need to form a legal entity but cross that bridge when you get there.
Ask yourself can I really do what I want to do without this legal business entity?
^ I read here that you can register for Barangay Micro Business Enterprise. Well, I didn't do much research on it but I think it allows the owner to have a tax excemption. Maybe it's a good entity to start with.
Hey, I noticed you also commented in that article!
LOL.. what for? Taxes and fees will eat up your capital.
Wow. Hahaha! But I think some investors won't invest if you're not a registered business? Or maybe BIR will seize you when they want?
investors are looking for something worthy to invest in, not someone who knows how to register a business entity.
if you dont file your taxes month you are charged PHP1000 per month per unfiled report + backtaxes. its automatic in their system. dont want to be charged when you have nothing to show for? dont register yourself in the system. it makes no sense.
anything that doesnt contribute to the learning of your product is waste.
Do You have the steps in registering start ups?
DOST-PEZA Open Technology Business Incubator (Open TBI) is a wholly-owned government facility assisting IT- and ICT-based startups. You might be interested to visit our website www.opentbi.org and know more about services (including facilitation of permits and business registration) extended to budding technopreneurs.