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Should I incorporate a home-based business?

Answered By Aidon "Hughie" Bilbao, Editor


When you incorporate, it basically means you have purchased a license. It is a general fact for every entrepreneur to incorporate their businesses. Any activities that generates profit is considered to be a business and needs to be licensed to ensure that it will operate in compliance with the laws acting on it and also for the welfare of the customers.

In the case of home-based business, it needs not to be incorporated in the beginning, especially if you are just conducting business in your neighborhood. Small businesses with just 3 personnel or less are commonly exempted from getting a license. However, if your business is expanding and your operation is now reaching other locations, it is the time that you need to incorporate it.

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