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Starting a corporation


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i like to rent out two apartments, and hopefully slowly expand.

 

Would it be wise to start a corporation to do this,for the reason of liability, or tax etc?

 

 

in case something happens to the apartments, fire, earthquake, etc and there is personal loss..

 

i don't like (the wife) to be hold liable, and/or our other property could be in jeopardy (the house we live in)

 

also regarding yearly property taxes will there be any benefits?

 

can anyone say something reasonable about this??

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Bet_Busta

As far as liability is concerned, officers of the corporation is still liable Example, Legacy.

 

As far as starting a corporation, this may not be complete.

 

1. Register with SEC.

2. With SEC certificate register with DTI.

3. With the above acquire a business permit in your location.

4. Register with BIR.

 

For tax concern, Corp are levied 35% on net income while Single prorietorship is dependent on amount with a max of 32% (see BIR tax table). Then there are expenses allowed in corp and not in single proprietorship; example, a reasonable amount of

entertainment expense.

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Citizen Smith

As far as liability is concerned, officers of the corporation is still liable Example, Legacy.

 

As far as starting a corporation, this may not be complete.

 

1. Register with SEC.

2. With SEC certificate register with DTI.

3. With the above acquire a business permit in your location.

4. Register with BIR.

 

For tax concern, Corp are levied 35% on net income while Single prorietorship is dependent on amount with a max of 32% (see BIR tax table). Then there are expenses allowed in corp and not in single proprietorship; example, a reasonable amount of

entertainment expense.

 

Please advise : a foreigner cannot open a single proprietorship if the only visa he has at present is a tourist visa.

 

It seems they dont give you the business until you have the visa and they dont give you the visa until you have the business. Catch 22. Is this correct ? Thansk

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Headshot

Please advise : a foreigner cannot open a single proprietorship if the only visa he has at present is a tourist visa.

 

It seems they dont give you the business until you have the visa and they dont give you the visa until you have the business. Catch 22. Is this correct ? Thansk

It is my understanding that a foreigner can't open a single propietorship period...unless they have a lot of money ($2,5000,000) to invest in the business and the business will have at least 10 full-time Filipino employees.

 

However, the 35% tax is on all corporations...not just single propietorships. That also doesn't include the annual fees that must be paid to keep the corporation going.

Edited by Headshot
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Bet_Busta

As far as liability is concerned, officers of the corporation is still liable Example, Legacy.

 

As far as starting a corporation, this may not be complete.

 

1. Register with SEC.

2. With SEC certificate register with DTI.

3. With the above acquire a business permit in your location.

4. Register with BIR.

 

For tax concern, Corp are levied 35% on net income while Single prorietorship is dependent on amount with a max of 32% (see BIR tax table). Then there are expenses allowed in corp and not in single proprietorship; example, a reasonable amount of

entertainment expense.

 

Please advise : a foreigner cannot open a single proprietorship if the only visa he has at present is a tourist visa.

 

It seems they dont give you the business until you have the visa and they dont give you the visa until you have the business. Catch 22. Is this correct ? Thansk

 

The OP is putting the business on his wife's name, I would assume a Filipina.

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NittanyLion

If you sell anything then you're required to have a proper business. Some people will tell you that the process of setting up a business is easy. I don't agree. I used a consultant.

 

Talk to Judah Hirsch at Triple I Consulting. That's who I used. http://www.tripleiconsulting.com/main/ You can at least get some initial advice. He sets up businesses for a living.

Edited by NittanyLion
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