Understanding the Difference: Single Proprietorship vs. One Person Corporation

💼A single proprietorship is a business owned by one person, while a one person corporation is a legal entity with a single stockholder.

📝A single proprietorship is registered with the Department of Trade and Industry (DTI), while a one person corporation is registered with the Securities and Exchange Commission (SEC).

🏢A single proprietorship is not a separate legal entity, while a one person corporation is a separate legal entity from its owner.

💰In a single proprietorship, the owner is directly liable for the business's debts and obligations, while in a one person corporation, the owner's liability is limited to the capital invested.

📊A single proprietorship is subject to graduated tax or flat rate tax, while a one person corporation is subject to corporate income tax.

What is the registration process for a single proprietorship?

—A single proprietorship is registered with the Department of Trade and Industry (DTI), and the process can be completed within an hour.

How long is the validity of a single proprietorship registration?

—A single proprietorship registration is valid for five years and needs to be renewed after that period.

What is the liability of the owner in a single proprietorship?

—In a single proprietorship, the owner is directly liable for the business's debts and obligations.

What is the registration process for a one person corporation?

—A one person corporation is registered with the Securities and Exchange Commission (SEC), and the process takes around two weeks.

How is the taxation different for a single proprietorship and a one person corporation?

—A single proprietorship is subject to graduated tax or flat rate tax, while a one person corporation is subject to corporate income tax.

00:00Introduction to the topic and a welcome message.

01:18Explanation of the difference between a single proprietorship and a one person corporation.

03:28Comparison of the registration process for both types of businesses.

06:57Discussion on the liability of the owner in a single proprietorship and a one person corporation.

11:33Explanation of the taxation differences between the two types of businesses.

16:47Clarification on the validity and renewal process of a single proprietorship registration.

18:37Conclusion and call to action to subscribe, like, and share the video.