Step 2 of 11 in Business Hall
Next in your path: 2.29 Start a Small Business in the USA (LLC, EIN, SBA)
This course is education only. Rules, fees and forms change, and every business is different. Before you file anything, confirm the details with the agency itself (DTI, your city or municipal Business Permits and Licensing Office, BIR, SSS, PhilHealth, Pag-IBIG) or with a licensed accountant or lawyer.
Starting a business is like opening a sari-sari store. You can run it alone, with a friend, or make the store its own "person" on paper. Each way has a different office where you sign up.
| Business type | Who owns it | Where it registers |
|---|---|---|
| Sole proprietorship | One person | DTI (business name) |
| Partnership | Two or more people | SEC |
| Corporation (including a One Person Corporation) | Shareholders | SEC |
Ana sells home-made polvoron online. She works alone and starts small, so she registers as a sole proprietor with a DTI business name. If she later wants partners or investors, she can talk to a lawyer about forming a corporation with the SEC.
[Host] "Before you sell anything in the Philippines, decide what kind of business you are."
[Text on screen: Sole proprietor = DTI] "Running it alone? That's a sole proprietorship. Your business name goes to the DTI."
[Text on screen: Partnership or Corporation = SEC] "Two or more owners, or a corporation? That goes to the SEC."
[Text on screen: One Person Corporation] "There's even a One Person Corporation: a corporation with just one stockholder."
[Host] "Simple start, or more protection with more paperwork. Pick what fits, and ask a professional if you're unsure."
Write one sentence: "My business will start as a ______ and will register with ______ because ______." Then write one question to ask a Negosyo Center counsellor or an accountant.
Copy this, open Claude, paste it, and Claude will walk you through the lesson step by step.
For a grown-up: Claude is for adults (18+). Copy this, paste it into Claude, and use the answer to explain the lesson to your child.
I'm learning "Start a Small Business in the Philippines (DTI, BIR, permits)" on The Future Market. Lesson 1: "Pick your business type". What the lesson teaches: - Business type - Who owns it - Where it registers - Sole proprietorship - One person - DTI (business name) - Partnership - Two or more people - SEC - Corporation (including a One Person Corporation) - Shareholders - SEC - The DTI says a business name is any name, other than your true name, that you use for your business. Any Filipino who is at least 18 years old can register one. - Only partnerships and corporations registered with the SEC may use words like "company", "corporation" or "incorporated" in their names (DTI BNRS FAQ). - The Revised Corporation Code allows a One Person Corporation (OPC): a corporation with a single stockholder. The SEC's briefer says no minimum authorized capital stock is required, except where a special law says otherwise. The exercise I'm working on: Write one sentence: "My business will start as a ______ and will register with ______ because ______." Then write one question to ask a Negosyo Center counsellor or an accountant. I'm stuck. Please: 1. Explain the main idea in plain, simple words with one everyday example. 2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step. 3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.
I'm a parent helping my child (about 8 years old) with a lesson called "Pick your business type" from the course "Start a Small Business in the Philippines (DTI, BIR, permits)". Here's what the lesson says: Starting a business is like opening a sari-sari store. You can run it alone, with a friend, or make the store its own "person" on paper. Each way has a different office where you sign up. The activity: Write one sentence: "My business will start as a ______ and will register with ______ because ______." Then write one question to ask a Negosyo Center counsellor or an accountant. Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words. Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
Which agency registers a sole proprietor's business name?
The DTI (Department of Trade and Industry).
How much is a DTI business name registration with City/Municipality scope?
PHP 500, plus PHP 30 documentary stamp tax.
How long is a DTI business name registration valid?
5 years from the date of registration.
What must you get from your barangay before the city issues your business permit?
A barangay clearance (RA 7160, Section 152(c)).
When are local business taxes and fees usually paid?
Within the first 20 days of January (or of each quarter if paid quarterly), unless an ordinance says otherwise.
When must a self-employed person register with the BIR?
On or before the start of business: the first sale, or 30 days after the Mayor's permit or DTI certificate, whichever comes first.
Is there still a PHP 500 BIR annual registration fee?
No. The EOPT Act removed it; the BIR stopped collecting it on January 22, 2024.
Who can choose the 8% income tax option?
Purely self-employed individuals or professionals whose gross sales and other non-operating income do not exceed the PHP 3,000,000 VAT threshold (and who are not VAT-registered).
Within how many days must a new employee be reported to SSS?
Within 30 days from the hiring date.
Which PhilHealth forms does a new employer file?
The ER1 (Employer Data Record) and a PMRF for each employee.
This lesson is part of full access: every course and every level for one payment.
This lesson is part of full access: every course and every level for one payment.
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