Starting a business requires registering a business name, which must be done in order to conduct business legally. The Department of Trade and Industry (DTI) is the government body in charge of registering business names in the Philippines. The price to register a business name with the DTI is determined by how many years you want the name to be registered.
The cost to register is PHP 200 for a year. The cost is PHP 500 for a three-year registration and PHP 1,000 for a five-year registration. It is recommended to check with the DTI for the most recent fees as these are subject to change.
Yes, under a single EIN (Employee Identification Number), you may have several DBAs. The Internal Revenue Service (IRS) issues an EIN, a special nine-digit number, to distinguish a company organization. A DBA, commonly referred to as a trade name or fictitious name, is the legal name under which a firm conducts its operations. A company can operate under numerous names without having to apply for a separate EIN for each DBA by having multiple DBAs under one EIN.
Your choice between a sole proprietorship and an LLC (Limited Liability Company) will rely on the kind of business you operate and your personal preferences. The simplest type of business structure is a sole proprietorship, which has just one owner and one employee. All of the company’s obligations and debts are personally owed by the owner.
An LLC, on the other hand, gives its owners limited liability protection and is a separate legal entity from them. As a result, the owners’ private assets are shielded from the obligations and liabilities of the company. Additionally, an LLC provides additional freedom with regard to taxation and organizational structure.
Although an LLC has numerous benefits, it also has some drawbacks. An LLC costs more to establish and manage than a sole proprietorship or partnership, which is one of its main drawbacks. Additionally, an LLC must submit annual reports and keep records, among other formalities and rules.
So, llp or llc—which is preferable?
The kind of business you have and your personal preferences will determine whether you should choose an LLC or LLP. Similar to an LLC, an LLP is a type of partnership where the partners are protected from certain liabilities. However, businesses that provide professional services, like law companies and accounting firms, frequently use LLPs.
An LLC, on the other hand, gives its owners limited liability protection and is a separate legal entity from them. Additionally, an LLC provides additional freedom with regard to taxation and organizational structure.
In conclusion, registering a business name with the DTI is a crucial first step in launching a company, and the price is determined by how many years you want the name to be registered. The decision between an LLC, a sole proprietorship, or a partnership relies on the type of business and the preferences of the individual, and it is permissible to have many DBAs under one EIN. The decision between an LLP and an LLC is based on the sort of business, and while an LLC has numerous benefits, it also has certain drawbacks.
Yes, a Limited Liability Company (LLC) may employ people. An LLC is a type of business organization that combines the tax advantages of a partnership with the liability protection of a corporation. Like any other corporate company, it has the ability to recruit personnel, pay their wages, and offer them benefits.