Why Register Your Freelancing Business
Some freelance businesses are single contracts and very small, there might not be a need to register the business as a business until it grows, but others can be bigger and can generate a larger income. Freelancers who are just getting started need to take the initiative which requires registering with health care insurance providers, as well as completing and filing tax documents and, in certain cases, acquiring a business license. BIR Registration for freelancers was not a hot issue of discussion before the pandemic, because most people were full time employed and working from the company offices. With the news that online sellers and freelancers must register their businesses, many people were concerned about having their businesses properly registered.
The freelance economy offers several chances for professional development, social enrichment, and financial security. Employees, homemakers, and even jobless individuals freelance to generate additional money and explore career opportunities. However, even if you are not employed by a corporation, whatever money you receive is taxed in the eyes of the Philippine government. This includes earnings from freelance jobs. That is why, in order to prevent extra difficulties later, you must register your freelancing job as soon as possible.
There are several advantages to formally establishing your freelancing firm, beyond the obvious legal ones:
1. Sense of validity – Once you’re recognized with the BIR and issued official receipts with your name, clients will sense greater confidence employing your services. As an added bonus, having your business officially recognized as one can help spread the word of your service and help you attract more clients.
2. Issue receipts – most companies want receipts as evidence of expenditure. Without it, companies cannot legally utilize it in their company; so, they need it. Furthermore, your clients are probably eager to engage into transactions involving large amounts of money if you can provide official receipts, which you can only get if your business has been registered.
3. Meeting your moral and ethical obligations – Registering enables you to sleep easier at night because you know you’ve done what you should as a worker, an honest business owner, and as a Filipino citizen.
Even if you’re a full-time professional or just starting out, there are perks to being registered that can help you succeed as a freelancer so do not forget this important part.
