Freelancing has a lot of personal benefits such as having flexibility on your work and your time in doing it, having control over your workspace, higher income and more personal quality time, but more can be gained when you register your business as a freelancer.
Here are some of the advantages that you can gain when you are recognized as a tax-paying freelancer once you register your business:
Registering your business entitles you to financial and legal assistance by government agencies when you encounter difficulties and issues.
For instance, you’ll certainly need your BIR Certificate of Registration and tax identification number if you want to open a corporate bank account for your business. Going through the process of registering may be an added task but this will keep your business more secure
You’ll want to choose a business name that reflects your brand identity and doesn’t clash with the types of goods and services you offer.
Once you’ve chosen one, it would be better to have it registered and get a trademark, so your business name won’t be imitated by other business entities even at a national level.
You appear more professional to your clients when you have registered your businesses and provide them with your business name.
In this way, clients may feel more confident to close a deal with you since they will feel that they are obtaining goods or services from a legitimate business.
Your income tax return (ITR) as a registered business serves as you proof of earning.
If you intend to take out a bank loan or if you want to file applications for other types of financing, your ITR and other official papers as a registered business are just some of requirements that banks and lending companies will ask from you so your application will be approved.
Most clients here and abroad require official receipts as proof of their expense and payment to your business.
Customers are likely to see your business as a more reputable and trustworthy enterprise if it is registered with government agencies like the BIR. They are likely only going to be willing to enter transactions that involve huge sums of money if you can offer official receipts, which, in turn, you can only acquire if you’re already registered your business.
Once you’ve registered your business, you would also need to pay for your monthly government payments. But you don’t have to worry since you can easily pay for these via Maya!
For existing Maya users, update your app to Maya
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