Single proprietor

Mon, Oct 24, 2011 at 6:27 PM

Hi Miss Al,

Thank you so much for your kind and accommodating response. While the 'benefits' is one of the reasons why I'm registering, I'm mainly doing it because I want to have a good night sleep, thinking I paid my taxes. :)

I’m taking everything seriously because when tax is mentioned, our less fortunate kababayans would immediately come to my mind. They are mainly benefitting from the taxes we pay. My loved ones and I are benefitting from it too, and I thought I have to give back. Although our system isn’t perfect, I’m still hopeful. :)

For the past few days, I've spent my time doing research. In the process, I also made it a point to share what I’ve found out to fellow freelancers who are also clueless or just haven’t thought of paying taxes. In fact, I’ve made it as my advocacy to let freelancers know that they have to pay taxes. I’ve been pasting tax-related links, including yours, to different sites and forums. I’ve also started convincing my freelancing friends to pay their taxes.

Anyway, sorry for the long introduction :) . . . I used to be a call center agent but I’ve been made redundant last year. Thankfully, I discovered online jobs. I'm a freelance writer, specifically a web content writer at I am not really a ‘professional’ in a sense and I just work from home. I've been providing writing services to my clients and most of them are from abroad. Since I used to be employed, I’m wondering if I’d be required to declare that or I can register as professional right away. Anyway, you’re right. I think I’m going to have to ask a BIR personnel about this when I visit my RDO.

I’ve read that you’ve once registered as a single proprietor. I’m thinking of using a business name to represent myself to clients, but I’d be on my own and I won’t have employees. My question is if I register as a single proprietor, will it mean more taxes for me even if I’m the only one in my business?

That’s just about it. Thanks for taking time to read this email. You’re such a nice and inspiring person. I’d certainly be visiting your site for its other contents. I’m also wishing all the best for you.




Wed, Oct 26, 2011 at 2:23 PM

Dear Loid,

Thank you for your email and for the introduction--highly appreciated here. Be encouraged to continue your plan to use a business name. (The DTI usually asks for a list of three names, so that you have options in case your first choice is already taken.) Single proprietors are required to pay taxes--monthly (3% of gross), quarterly, and annually--similar with the tax types that most, if not all, self-employed income earners pay. There may be more paper work, but that too will be manageable. ;-)