Sole Proprietorship
Sole Proprietorship
It is a form of business owned by a single person, referred to as the “sole proprietor”. The simplest and most common structure chosen to start a business. It is an unincorporated business with no distinction between the business and you, the owner. Exclusively owns all assets and profits of the business and are responsible for all business’s debts, losses and liabilities. This form of business is registered with the Department of Trade and Industry (DTI).
Pros:
- There is little paperwork needed just like individual registration. You only need to apply for a business name and register your business with the Department of Trade and Industry (DTI) – National Capital Region (NCR). In the provinces, application for sole proprietorships should be done with the DTI regional or provincial offices.
- Since you are the sole owner, you have complete control over business decisions. You also get to enjoy and keep all the profits from the business.
Cons:
- You are personally and fully liable for your business’ debts. This means a person suing your business could make a claim against your personal.
- It may be difficult for you to attract investors or capital since the sole proprietorship is closely linked to your personal